Liquidations hit decade-high in worst period since global financial crisis
Saturday, 15 November 2025
The number of businesses going into liquidation each month is at its highest in more than a decade, with no industries safe in what one expert has called the worst period since the global financial crisis.
In October, exactly 300 liquidations were recorded by the Companies Office, rocketing from 234 in September and 213 in August. The last month that saw 300 liquidations was March 2014, though there were also 294 in September 2024.
“It’s certainly the worst it has been since the global financial crisis, and indications are that it’s not going to slow down any time soon,” Richard Nacey, a partner at PwC, told The Press.
Nacey, who leads the accounting firm’s national business recovery services practice, said Inland Revenue had increased its liquidation applications and business confidence remained low – affecting corporate failure.
Liquidations were occurring across industries, though a greater portion could be seen in property and construction, as well as retail and hospitality, he said.
“General historic trends have shown that company failures lag the economic indicators, so when the economy is at its worst it can often take 12 to 18 months for corporate failures to peak.
“It appears as though we are in for a challenging two or three years. It’s always a cycle.”
Among the many liquidations announced in early November was Christchurch’s popular vegan establishment Grater Goods – now predicted to leave creditors $200,000 out-of-pocket.
The plant-based food venue and producer became a staple after owner Flip Grater launched it seven years ago with just $500. The “gutting” decision to place it in liquidation followed a potential Woolworths deal falling through, Grater told The Press last week.
An initial report from liquidator Brenton Hunt listed more than 50 creditors, including Inland Revenue, Christchurch City Council, multiple beverage and food companies, and Grater herself.
Staff were owed an estimated $10,000, Inland Revenue $60,000, unsecured creditors $100,000 and general secured creditors $108,500. Hunt predicted $50,000 of assets could be realised.
Grater Good’s demise came as liquidators tallied the debts of other Canterbury-based companies that focused on technology, marketing, engineering and joinery.
Orbica Holdings and Orbica, the companies behind a geospatial technology business that serviced the likes of Antarctica NZ, were placed into liquidation on November 6 and 7 respectively.
Hunt’s first reports said Orbica grew strongly from 2017, won awards, and even opened a subsidiary in Germany. However, Covid-19, lengthy sales cycles, expansion costs and other issues forced the company to pivot, attempt to sell, and then close the business.
Shortfalls of $40,000 and $900,000 were calculated for Orbica and Orbica Holdings respectively.
Alsop Joinery operated in Christchurch for more than three decades before it was placed into liquidation on November 7. Hunt’s initial report cited an economic downturn and slowing projects.
The report identified $25,000 owed in GST, $70,000 to staff and $350,000 to unsecured creditors. It was yet to be confirmed if $120,000 of plant and equipment and $200,000 of accounts receivable on the books could be realised.
The Official Assignee, the Government’s in-house liquidator, was appointed to the liquidation of marketing company Kiwi Success Group, restaurant operator CM Pacific, and engineering company Howden Engineering (2020), all on October 2.
Reports filed in early November recorded failure to pay tax as the reason for each liquidation.
Kiwi Success Group owed creditors upwards of $430,000, CM Pacific – which used to run Japanese restaurant Kaiyo in Wigram – owed $345,000, while Howden Engineering owed $212,000.