Westie Food Group collapses owing nearly $5.9 million

Auckland food distributor Westie Food Group Ltd has collapsed owing approximately $5.88 million. The company, which supplied chilled pies, savouries and ready-to-eat foods to around 700 New Zealand supermarkets, was placed into receivership on 15 July. Receivers Stephen Keen and Stephen White of Teneo Financial Advisory New Zealand were appointed by BNZ following a default on a lending agreement.

The company's debts include $3.3 million owed to unsecured creditors and $1.22 million owed to BNZ. Other liabilities include $143,080 to Prospa Pty Ltd, $879,422 to Bizcap NZ Ltd, and roughly $238,000 to Inland Revenue. While employees received their preferential entitlements, the receivers stated, “Distributions to other creditors are not envisaged at this stage”.

Receivers approached 20 potential buyers but received no offers. They noted that a purchaser might face downtime because the manufacturing operation was separate from Westie Food Group. Consequently, the third-party manufacturer on-site purchased the company's stock, plant, equipment and goodwill on 4 August.

Westie Food Group marketed and distributed products but did not manufacture them. An independent manufacturer at the same premises handled the making, packaging and sealing of the food.

Where reports differ

• One report states the amount owed was $5.8 million, while another reports it as nearly $5.9 million

Compiled from reports by NZ Herald and Stuff.