Footwear chain Banks Group’s business sold to a group of investors led by the former owner’s son for 2.3 million in November. Now, the finalised sale means the group are able to pay off outstanding loans against the business.
The news of the 2.3 million sale means all outstanding loans, minus what is owed to the Bank of New Zealand, has been paid out.
When the chain was originally bought out by investors led by Jeremy Banks, the company owed 170 staff $339,000 and owed creditors (including BNZ) $1,557 million.
The latest report by receivers John Fisk and David Bridgman of PwC show Shoe Co paid $1.6 million for Banks Group's fixed assets and a further $666,000 for stock in July last year. The buyer also made a $50,000 payment towards the receivers' expenses.
BNZ was paid about 1.5 million, leaving $54,000 outstanding.
The receivers expect a $233,000 bill from the Inland Revenue Department and $27,000 from Customs New Zealand, which they said can be covered by the $293,000 of cash on hand.
They're also talking to the retailer's insurer over a claim arising before their appointment and are aware of one book debt owed to the company.
Any leftover funds are expected to go to BNZ, and Fisk said the receivers don't anticipate any available funds for the second-ranking creditor - the owner's family trust is owed $2.4 million from a series of loans in the two years leading up to the receivership - or non-preferential creditors.