All the Five Boroughs employees have been paid

Liquidator Jessica Kellow says the owners repaid some money

The liquidators of the company that owned the Five Boroughs restaurant in Wellington’s Roxburgh St have confirmed that all staff have now been paid what they were owed in full.

Liquidator Jessica Kellow of Shephard Dunphy says the former Five Boroughs directors, Elie Assaf and Bryn-evan Thomas, made “a partial payment of the money they owed to the company.”

The first liquidators’ report had shown the shareholders of the holding company, Glassescases, owed the company $96,514 and that 19 employees were owed $32,431 in holiday pay.

In a post to Facebook, Bryn and Elie said that “we’ve always had the staff’s interests at heart and have been in their corner from the beginning.”

Glassescases went into liquidation on January 8 and its shareholders have changed the name of another restaurant they have owned in Cuba St since 2010 to Five Boroughs.

As well as the holiday pay owing, Glassescases also owed Inland Revenue $246,565 in PAYE and GST, an amount that dates back several years and, together with the holiday pay owed, has a preferential ranking and will be paid before any other debts.

Those other unsecured debts include another $114,855 owed to the IRD in company tax and penalties, $14,000 owed to ANZ Bank and an estimated $26,973 owed trade creditors.

“We’d like to take the time to thank everyone out there who has taken the time to voice their opinions and concerns for the welfare of our staff and friends,” the Facebook post says.

“Not everything said has been in a positive way toward us personally or our restaurant but we know that everything said has come from genuine concern for the well-being of our workers.”

The post goes on to say that “these things do take time,” and that they have acted as swiftly as possible to rectify the situation.

“If you know Elie and myself at all you will know that we are in no way walking away from our financial obligations. We’ve made some mistakes in the past year and are paying for those now.”


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9 Comments & Questions

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The directors have taken the name to carry on elsewhere without I presume paying for it. Although I suspect the publicity around this may, really should, make that name worthless. [Edited]

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No one will much care if the IRD get diddled.

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Except for the taxpayers who have to make up the difference. An outstanding IRD bill of more than $250k would have taken some time to accumulate. I hope their next venture doesn't follow the same path but I won't be surprised if it does

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Time for IRD to make an example of the Directors and prosecute. Given the size of the IRD debt and the time it would have taken to get to that you would expect that the IRD would have been on to them long ago.

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In fairness, they're small fry re tax, compared to the likes of this guy getting off of $6.67 million of tax while still enjoying the luxury life.

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=1074...

"smart business"

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Isn't PAYE collected on behalf of the staff member? Therefore these directors stole from their staff by not passing on tax obligations.

Employers who dont pay PAYE make me think of that line from Star Wars - 'You will never find a more wretched hive of scum and villainy.'

Its called Pay As You Earn - not pay when you want.

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Sounds like it was only the negative buzz they were getting that made them pay up. I'm not convinced, an will stay wary of their new venture. I'm also not convinced by NBR's pulling of the original story and subsequent apology. Jenny Ruth's comments were inappropriate and I'd like to see a statement from her personally, rather than a blanket NBR statement.

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Yes, my comments were inappropriate. My apologies.

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Thanks Jenny

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