A Wānaka fashion retailer has been put into voluntary liquidation by shareholder resolution, citing the downturn in retail sales and increase in costs.
Wānaka Apparel Ltd, which trades as Soul Clothing, was incorporated in 2011 and is owned by Sally-anne Gordon who is also sole director.
In their inital report, Trevor and Emma Laing, of Laing Insolvency Specialists, said liabilities were estimated at just over $200,000.
Within the past 12 months, the business relocated from central Wānaka to Sir Tim Wallis Dr at Three Parks, the director advising it was necessary due to increasing rental costs which were causing financial stress.
Unfortunately, the move had not resulted in sales reaching the target required to make the business a viable proposition.
The downturn in retail spending had severely impacted the business to a point where continued trading was not a viable option and the directors had made the difficult but necessary decision to cease trading to limit further financial damage.
There were nine registrations recorded on the Personal Property & Securities Register.
The liquidators were aware there were preferential employee entitlements outstanding for two employees — that amount was not significant.
They had been advised the company had Inland Revenue Department liabilities. The exact amount of the preferential debt was being confirmed.
At this stage, the liquidators did not have accurate details of the unsecured creditors. Further inquiries were required to confirm the details and amounts outstanding.
It was too early in the liquidation process to predict the likelihood of a dividend becoming available to unsecured creditors.
