The Grand put into voluntary administration

Saturday, 31 August 2024

Darin Rainbird, the businessman behind the failed The Grand complex planned for Cathedral Square, has put his company into voluntary administration.

The move comes as former staff left out of pocket by the failure say they are frustrated at being kept in the dark.

The hospitality and tourist business was initially meant to open in late 2021, but Rainbird struggled for funds to fully fit out Christchurch’s heritage former central post office. Landlord Gordon Chamberlain took back the keys earlier this month and is seeking new tenants.

The administrators of The Grand Cathedral Square Ltd are Christopher McCullagh and Stephen Lawrence of PKF Corporate Recovery and Insolvency Ltd in Auckland.

McCullagh confirmed creditors include both former employees and businesses owed payment.

Administration involves administrators taking over a troubled company to determine whether it can be saved. If the decision is made to wind the company up, arrangements are made to pay any available funds and proceeds of liquidated assets to creditors and shareholders.

The process takes about five weeks and involves two creditors’ meetings.

McCulloch said creditors would soon be sent notice of the first meeting.

The full extent of the company’s debts was yet to be determined, he said.

“We are still in the process of collecting all the information about the business.

Are you affected by this business collapse? Email liz.mcdonald@press.co.nz

The administration follows Rainbird emailing shareholders two weeks ago saying he would liquidate his company.

While the doors of The Grand never opened, he did operate side businesses including bike hire, an ice cream cart, and an i-Site tourist information office which closed in May.

The company has about 60 shareholders, including both crowd-fund investors and staff given shares in lieu of wages. Many of the staff are on work visas.

Rainbird is the largest shareholder with just under 73% of the company.

Former employees have told The Press they have been left heavily out of pocket, are missing payslips to prove their working hours, and have not been kept informed.

Former staff member Liam McFarland said he did not receive his final pay packet after Rainbird made them redundant without notice in May.

“He said ‘there’s no money left so I can’t keep employing people’.”

McFarland said he is still hunting for another job.

“I’d just love to get the pay for all the work I did. We have not been kept informed - there’s a lack of communication,” he said.

“I kept asking for my last payslip but I didn’t get it. It’s disappointing.”

Another employee of The Grand, who asked for their name not be used, said they were owned $11,000 in unpaid wages, holiday pay, and pay in lieu of notice.

“Darin said at the end of April we were going to get funding and we are going to open in June. For such a long time he said he would pay.

“In May he said there’s no funding, don’t come to work.”

The employee said their employment ended with two months’ wages still outstanding, and with some payslips missing.

“Then in June he (Rainbird) said he was getting the funding, come back to work.”

The employee refused to return. They contacted a lawyer and have emailed the company but did not receive a reply.

Rainbird did not reply to The Press when given a chance to respond to the claims of his former workers.

He said recently he felt “great regret and guilt” over the failure of the business.

Rainbird is also a director and shareholder of four other companies, Wreckless Inc Ltd, Seedostay Ltd, Dondar Enterprises Ltd, and Peninsula Promotions Ltd.