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The company behind Nido, a furniture and home goods superstore in West Auckland, is bankrupt.
A retail expert says Swedish retail store Ikea might be interested in the site of the failed Nido Living superstore in west Auckland.
The huge store, which has more than 100 employees, is still trading, but went bankrupt on Friday after the collapse of the construction company that was still working on it.
Both had a single common director, the founder of Nido and the general director Vinod Kumar.
Kumar has often expressed his admiration for Ikea, the Swedish furniture chain that has signaled its intention to enter the New Zealand market in the coming years.
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Retail sales expert Chris Wilkinson of First Retail Group said Ikea might logically be interested in the size and scale of the site.
But their decisions would also be influenced by other factors, such as stocks and supply chains, “so it’s not a ‘flip the switch and they’re here.’
” However, the Nido site is good and is at the head of that growth corridor in West Auckland, plus it will benefit from future synergies with Costco. [another retail giant preparing to open in Auckland]. ”
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Vinod Kumar started Nido, a 27,000-square-foot furniture and home goods store in Henderson.
Wilkinson added that the collapse was “a very sad circumstance of the challenges this year has presented to companies.”
However, this was magnified by the scale given the size of Nido. The owners had a dream that at any other time would have been achievable. ”
McGrathNichol receivers Kare Johnstone and Conor McElhinney said Magsons Hardware, which is listed as Nido, will continue to trade while matters are evaluated.
There will also be a discounted stock sale campaign shortly.
“It is very early, we are disappointed this morning. At the moment, while we continue to evaluate the financial position of the company and the options, we continue to negotiate, while looking for a buyer for the business. ”
Nido opened in June and at 27,000 square meters aspired to be the largest retail store in the country.
Kumar, who previously owned two 10 Meg Miter, had plans for a comprehensive furniture store with 100 showrooms, automation, and a large parking lot.
However, the building was incomplete at the time of opening and business was affected a second time by Level 3 restrictions in August.
Vijay Holdings wrote to creditors, citing cash flow difficulties due to the lockdowns and asking them to be patient.
But in November it went into liquidation due to 2.6 million dollars. Kumar has been contacted for comment.
McGrathNicol, who only controls the trading company and not the property, was summoned by Central Assets Investment, a guaranteed lender.
In a statement, Central Assets said it agreed with recipients that the timing of Nido’s opening “created great pressure on the store’s financial success.”
“It is very disappointing that the vision of Nido’s founder, Vinod Kumar, could not be realized.”
The bankruptcy came on the same day that Auckland City Council confirmed the store was safe for public use, after a group of creditor subcontractors wrote to the council expressing concerns.
The group said some of the consents related to emergency lighting, passive fire systems, siding and other features should be signed before the store can have justified consent for public use.
But the council said that while there was still work to be done, the public was safe.
