Claims against Christchurch hospitality company rise by $340k amid soaring liquidations and ‘fragile’ industry conditions

Wednesday, 3 June 2026

More than 400 hospitality businesses have gone bust in the last year, an almost 50% increase in liquidations for the industry.

The grim figures demonstrate ongoing financial pressure for hospitality, experts say, as overall business conditions remain “fragile”. The construction industry is also facing difficulties.

It comes as creditors claim another $340,000 from a string of failed Christchurch-based restaurants, with another linked eatery now facing liquidation.

Centrix’s latest analysis of the credit market found conditions for businesses were stabilising in the wake of geopolitical tensions and elevated oil prices, but they remain delicate.

Demand for credit has softened overall, but company liquidations were still elevated – particularly in construction and hospitality, “highlighting persistent financial pressure”.

Chief operating officer Monika Lacey warned small business owners were particularly exposed, and it was important to take proactive steps before it became too late.

Overall, liquidations of all company types have increased 17% year-on-year, tracking towards their highest level since 2010.

While construction made up the highest number of liquidations at 780, it represented a 7% increase compared to hospitality’s whopping 49%.

It made hospitality the fastest rising industry for liquidations, sitting at 414 in the past year.

“This sharp increase highlights the continued strain on the sector, particularly amid cost pressures and softer discretionary spending,” the analysis said.

In Christchurch, creditor claims against hospitality company Zzan Ltd increased $342,000 since it first was placed in liquidation in October, then owing about $800,000.

Zzan used to operate two Korean fried chicken restaurants in Christchurch and one in Wellington.

A second liquidator’s report released last month highlighted the subsequent unsecured creditor claims, while advising an end date to the liquidation was not yet in sight.

“Issues that the liquidator is currently investigating include a review of the sale and purchase of the business that occurred before the liquidation,” the report said.

Zzan is connected through director Jung Sub Kim to companies Jimmy’s Smoke House Ltd, Sake Brothers Ltd and Sushi & Zenbu Ltd, which collectively owe $1.9 million in tax.

Inland Revenue is scheduled to apply for the liquidation of Kihon Ltd, which Kim used to direct, and which is further connected to the other companies through shareholder Jonathan Hyungjoon Kwon.

Kihon Ltd listed its trading name as ‘Midori’, a Japanese buffet on Victoria St.