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The owners of the Burger King franchise in New Zealand were bankrupt for more than $ 65 million.
Burger King signage
Photo: RNZ / Calvin Samuel
Recipients, KordaMentha, said the fast food chain that has more than 80 outlets across the country has been significantly affected by the Covid-19 blockade.
Brendon Gibson, a partner at KordaMentha, said he was seeking vendor and owner support to restart the business when the shutdown was lifted.
“The ultimate goal of the court administration is to restart the business after closing and then transition the business to a new owner through a sales process.”
He said that financiers and main franchise operator Burger King Asia Pacific supported this process.
The bankrupt parent companies are Tango Finance, Tango NZ and Antares NZ, but the operating company, also called Antares, was not bankrupt and could continue to operate.
Job and income data showed that Antares NZ had received about $ 11.5 million from the government wage subsidy scheme.
No details on the amounts owed by the parent companies or those who bankrupted them were immediately available.
Gibson said the wage subsidy would be critical in allowing the restaurants to reopen when the closure is lifted.
“It is not an easy situation for staff,” he said.
“The operating business has received the wage subsidy, so they will continue to be paid while we are locked up.”
He said the companies were bankrupt, with the support of creditors.
Unite Union national secretary Gerard Hehir said the responsibility for judicial administration fell to its owners.
“Now they will just leave, leaving employees, banks and suppliers to bear the consequences. If there are job losses and business failures, then of course taxpayers will have to pay, too.”
Hehir said fast food chains are likely to recover strongly after the shutdown.
“Especially since most businesses have been run and run for some time, more suited to rules of prolonged social distancing than almost any other food provider.”
One of the nation’s largest fast food operators, Restaurant Brands, which operates the KFC, Pizza Hut, Taco Bell and Carl’s Junior Burgers chains, received $ 21.8 million in wage subsidies.
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