Mild winter blamed as BBQ Factory falls into receivership
Receiver sess little hope of a trade sale.
The BBQ Factory has put itself in voluntary receivership, with little hope of a trade-sale, or trading its way out of trouble.
Receiver Shaun Adams, of KPMG, was officially appointed around 11am this morning after talks with the company since Monday.
The chain's eight stores (three in Auckland, and one each in Hamilton, Tauranga, Palmerston North, and Lower Hutt) are closed today for a stock take.
Mr Adams told NBR he was still accessing the chain's financial situation, but it was "probably too far gone" for a trade sale.
The BBQ Factory is 100% owned by its sole director, Mark Royston Flaherty of Royal Oak, Auckland.
Appalling winter period
The chain had suffered "an appalling winter period" Mr Adams said.
The chain usually relied on sales of wood burners to see it through until the summer BBQ season.
But an unusually mild winter had seen wood burner sales fall to just 10% of their usual level (NIWA records that winter arrived late arrived late across most of the country, but the well-pubicised polar-bast saw average overall temperatures near-average in most places by the end of the season).
Poor sales caused cash flow problems and debt mounted and a private secured creditor called in a loan, precipitating the voluntary receivership.
Mr Adams said it was too early to put a figure on the amount owed.
It was too early to say if all the stores would re-open, but it was possible the chain's flagship outlets, in Auckland's Mt Wellington and North Shore, would open their doors again tomorrow.
With chances of a trade-sale slim and a closure likely, BBQ buyers could be in for some bargains, the receiver told NBR.
Beyond BBQs and burners, the chain also stocks spas, saunas and "outdoor leisure" equipment.
Around 40 jobs hang in the balance.
A person who answered the phone at BBQ Factory owner Mark Flaherty's home hung up when NBR attempted to ask for comment.
Chris Keall
Thu, 29 Sep 2011
Thu, 29 Sep 2011
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Mild winter blamed as BBQ Factory falls into receivership
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