Benny’s Barber and Hangar in liquidation owing $900,000

Monday, 15 July 2024

Ben Scott, owner of Benny’s Barber and Benny’s Hangar, which are in liquidation owing more than $900,000.

Christchurch start-ups Benny’s Barber Shop and Benny’s Hangar have gone into liquidation owing more than $900,000 though the former will keep trading thanks to a former All Blacks captain.

Both businesses, owned by Ben Scott, went into voluntary liquidation last week .

According to a liquidator’s report, Benny's Barber Shop Ltd owes more than $500,000. This includes an estimated $220,000 to Inland Revenue in GST andPAYE , $4500 in staff holiday pay and $300,000 to 13 creditors. The report noted the company’s working capital was used to finance the Benny’s Hangar operation and fell behind on tax and creditor payments associated with that venture.

Benny’s Hangar Ltd owes an estimated $400,000 to contractors and suppliers, who were all unsecured creditors. The company bank account was in overdraft at liquidation, the report said. There were no assets of value.

Benny’s Hangar was 80% complete when Scott tried to crowdfund its completion.

“The leased premises had been broken into a number of times in the weeks before the liquidation with [a] number of removable items stolen or damaged,” liquidator Brenton Hunt said in his report. “Police and insurance have been notified.”

Scott put both companies into voluntary liquidation, but recently sold Benny’s Barber Shop and has been re-hired as a barber.

“All current barbershop team remains the same and will be business as usual,” he said, when announcing the liquidation.

Benny’s Barber has operated since 2014. Its new owner is former All Blacks captain Reuben Thorne, the landlord of the property..

Thorne told The Press he took over the barbershop to recoup unpaid rent.

“He was already a tenant of ours and rather than finding a new tenant… it made sense for us to take it over and see if we could make it work.”

Ben Scott of Benny’s Barber Shop is opening Benny's Hangar - a place full of activities for all ages.

He would not confirm if he paid for the barbershop, or received it for free.

Benny’s Hangar was planned as an ambitious indoor entertainment venue offering a skate park, pump track, mini-golf and archery. It was 80% complete when the company was liquidated. Scott had run a crowdfunding effort on PledgeMe in May to raise the last of the financing. His target was $750,000. The campaign closed on May 22, having raised just $72,711.

“It’s been a 10-year journey,” Scott wrote on Facebook following the liquidations.

“From a small dream of starting a barbershop from my parents front yard in a caravan, I gave this my all and came up short. A lot of learning to come from this.”