A firm which provided hydraulic engineering services in Southland has gone into liquidation, owing about $410,000.

Hydraulic Solutions Southland Ltd — which was incorporated in 2016 — ceased trading in Invercargill in December and was placed into liquidation by special resolution of the company’s sole shareholder and director Jason Russell Holden, whose address was listed as Dunedin.

In his initial report, liquidator Brenton Hunt, of Insolvency Matters, said the company struggled through the Covid-19 restrictions.

It became difficult to source qualified staff, and Mr Holden was working in the company but sought employment elsewhere.

Working capital became more strained with delays in receiving payment. As Mr Holden was no longer working in the business daily, he attempted to sell it but, because of the lack of staff, was unable to complete a sale.

While it was not possible to say yet whether sufficient assets would be realised to make payment to creditors, it was looking unlikely, the report said.

Inland Revenue Department PAYE and GST were estimated at $200,000 while unsecured creditors were estimated at $250,000.

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