Shanton was put into voluntary administration in January, owing $7.8 million to 206 creditors. BWA Insolvency administrator Bryan Williams attempted to salvage the company, which then had assets totaling $3.35 million. Its debtors included the IRD, and it also owed outstanding holiday pay to employees.
An attempt to sell Shanton was made earlier this year, with BWA Insolvency reporting nine expressions of interest, but the deal did not meet with creditor approval.
Williams called for the company to be put into liquidation in March, but the business instead returned to the hands of its owners Inderjit Luthera, Vijesh Bhagwan Nangia and Pala Petrochem (owned by Mandeep Pala).
Shanton’s liquidation was announced last week. No changes to Shanton’s customer-facing operations have yet been observed, and the 18 remaining stores from Shanton’s former 37 appear to be still trading.
An initial report by co-liquidator Gareth Hoole says the liquidators do not intend to continue trading, and plan to disclaim store lease to avoid further costs.
The report does not say how many staff Shanton employs. The NZ Herald reported that at the start of the year, 155 people worked for the company, and around 70 jobs were trimmed during Williams’ restructure in March.
Hoole says the liquidators are seeking to sell Shanton as a going concern, but are cautious given Williams’ failure to do so.
“It is considered that since those efforts to achieve a sale as a going concern, the value of the company and its underlying assets has dissipated further. Should there be no interest in the business as a going concern the liquidators will seek to realise the assets of the company piecemeal for their best potential under a forced sale scenario.”
The report did not reveal Shanton’s value, but listed its liabilities as totalling $7.7 million.