Liquidated Camerons Clothing owes $900,000 to creditors
Camerons Clothing Ltd owes around $900,000 to almost 100 creditors and some are unlikely to get their money back, a report from the liquidators has revealed.
The clothing store, which operated in Oamaru, Waimate and Timaru, was put into liquidation late last month by its shareholders, who cited the effects of Covid-19 on the company’s business and changing buying habits of the public.
Iain Nellies, of Insolvency Management Ltd Dunedin, was appointed liquidator and in his report said unsecured creditors were unlikely to get their money. The company’s first winding-up report was filed on the Companies Office website last night, which revealed Camerons Clothing owed $908,000 to 92 creditors.
Of this amount, just over $663,000 was owed to secured creditors.
The report lists several clothing brands, such as Adidas, Swanndri, Rip Curl and Bank of New Zealand as secured creditors.
Preferred creditors – who owed $55,000 – were listed as Inland Revenue and company personnel.
Although the company’s total assets are not known, the report’s statement of financial position showed that Camerons Clothing owed approximately $36,000 in accounts receivable.
There was $5,000 factory, according to the report.
The liquidator was also aware of various stocks, plants, equipment and vehicles belonging to the company, some of which were subject to specific securities, he said.
Based on the information available, it seemed unlikely that any money would be left for unsecured creditors.
Preferred and preferred creditors such as employee claims, certain IRD claims and hire-purchase agreements would have priority.
“However, until the company’s records are reviewed and investigations into the company’s affairs are completed, this will not be confirmed,” the report said.
The liquidation was expected to be completed by the end of December this year.
The next report was due in September.