Collapse of Korean fried chicken company adds to $1.9m debt saga across linked restaurants

Thursday, 6 November 2025

A fourth company has collapsed in a string of related hospitality failures after sending money to the other struggling businesses while its own finances were in trouble.

Zzan Ltd, which used to operate two Korean fried chicken restaurants in Christchurch and one in Wellington, was placed into liquidation on October 29. It owes Inland Revenue more than $800,000 with other creditors to be confirmed.

It follows the demise of related companies Jimmy’s Smoke House Ltd, Sake Brothers Ltd, and Sushi & Zenbu Ltd on October 21, which collectively owe $1.9 million in tax.

All four companies, directed by Jung Sub Kim, sold their respective restaurants before they were placed in liquidation.

Zzan had “made a series of advances” to related companies experiencing financial difficulties, liquidator Andrew Oorschot said in a first report.

“However, Zzan Ltd itself was already underperforming financially, and the cumulative impact of these advances, combined with its own operational challenges, resulted in the company being unable to meet ongoing expenses.”

The company owed $800,000 in GST and PAYE tax to Inland Revenue, said Oorschot, from chartered accountants Ashton Wheelans.

Trents Wholesale Ltd, Bidfood Ltd and Independent Liquor (NZ) Ltd were among nine secured creditors. Unsecured creditors and other debts were yet to be recorded.

“There is likely to be inadequate funds available to satisfy all creditors,” Oorschot said.

“We have yet to review whether the [restaurant] sale occurred at fair value and what happened to the sale proceeds.”

Zzan and Sake Brothers both sold their restaurants to “related” parties, while Jimmy’s Smoke House and Sushi & Zenbu sold to unrelated buyers.

Oorschot predicted the liquidation would conclude in three to six months.