Williams warned creditors at a meeting on March 30 that the company shouldn’t return to company directors.
Instead, he said it would be a much better outcome for the company to be liquidated by someone independent.
A motion for liquidation was lost and Shanton has now returned to its original owners.
Shanton is owned by Inderjit Luthera, Vijesh Bhagwan Nangia and Pala Petrochem (owned by Mandeep Pala).
The clothing franchise has been plagued by trouble in recent years, as it was bought out of receivership two years ago.
This year, Williams has been trying to help salvage Shanton in the face of its financial woes, after it was found $7.8 million was owed to creditors.
The company’s assets total $3.35 million, leaving a shortfall of $4.4 million.
This was a significant increase from the company directors’ estimates in January. They said in a report to Williams the deficiency was $693,000.
Money is owed to the IRD, as well as outstanding holiday pay to Shanton employees.
Williams responded by closing 17 of its 37 stores and cutting staff.
The business was also advertised as for sale in the hope of finding a buyer to preserve the brand and pay back creditors.
In mid-February, BWA Insolvency reported nine of expressions of interest for the company. The deadline for bids closed February 24.
Eight creditors at the March 30 meeting didn’t support a “deed of company arrangement” that would have allowed the business to be sold and continue trading.
Though the majority, 56 creditors, were in favour of it, the eight who were against it controlled 55 percent of the vote.
What the future holds for the troubled company remains uncertain.