In July last year, the Australian-registered arm of the business, Kester Black Pty, entered voluntary administration, while the New Zealand business was put into liquidation the following month, with Kester Black Pty the sole shareholder.
It caused outrage from investors, upset about how financial problems had been handled, and Kester Black founder Anna Ross received abuse and death threats, her partner Fergus Sully said last year.
The stock, intellectual property (IP), and goodwill of Kester Black Pty were sold to New New New Pty Ltd, a company owned by Mr Sully, who said the sale allowed the business to continue operating under the new, simplified, more viable structure.
The sale was for just over $A146,220 ($NZ160,535).
Ms Ross, who started the business in Wānaka, was the largest creditor when Kester Black Pty entered voluntary administration, owed more than $220,000 but she opted to be an excluded creditor, meaning she would be paid nothing, Mr Sully said.
In their final report, the liquidators of Kester Black Ltd, Adam Botterill and Damien Grant, said the sole recovery of the liquidation was an indemnity paid from the parent company.
One preferential claim was received totalling just over $132,000, no secured claims were received and one unsecured claim was received totalling nearly $10,200.
The level of recoveries did not enable a distribution to unsecured creditors.
Last month, an Otago couple told the Otago Daily Times they had invested about $A5500 in the Kester Black crowdfunding capital raise, due to Ms Ross being local, and the appeal of ethically-produced products.
They believed Ms Ross and Mr Sully had not been ethical “and for them to be still trading under another guise is shameful”.
It was “shocking” there was no previous warning about the trading issues, and there was also disappointment Ms Ross had not “fronted up” to shareholders.
Previously, Mr Sully said a warehouse packing its three largest nail polish orders ever was flooded in January 2023 and due to an “insurance gap” the damages could not be paid out.
The couple said that showed “total incompetence”.
Yesterday, the couple said they were ironically offered a total of $3000 in product in an email from Ms Ross on Tuesday.
