The former operator of a Balclutha health store has been put into liquidation owing $220,000.
The director of Ibbotson 2020 Ltd, which formerly operated Health 2000 Balclutha, attributed the insolvency to competition with online sales and the effects of Covid-19.
The liquidators’ first report said the company had operated the franchise natural health store for nearly five years, retailing health products and supplements from a leased premises in Balclutha.
The company’s sole director, listed as Stacey Hill, cited several factors as contributing to the insolvency, “including the ongoing effects of Covid on retail operations, competition from discount outlets/online sales, as well as a change in personal circumstances that have impacted on her ability to operate the business”, the report said.
The business had been advertised for sale for some time.
“Eventually a buyer was found, however the sale price achieved was lower than anticipated.
“After payment of sale costs and employee entitlements, there are insufficient funds to repay all creditors in full.”
The company was placed into liquidation on October 15 by shareholder resolution, with Trevor and Emma Laing, of Laing Insolvency Specialists, appointed joint and several liquidators.
The liquidators were aware of 15 unsecured creditors at this stage, with liabilities to them estimated at $220,000, the report said.
They were advised the company had Inland Revenue Department liabilities and the exact amount of preferential debt was being confirmed.
Ms Hill declined to comment.
