Cash drop controversy: Who is Safety Warehouse boss Andrew Thorn?

NZ Herald

11 Dec, 2020 04:36 AM5 mins to read

A cash drop stunt by Safety Warehouse turned ugly when the crowd discovered the money wasn't real. Photo / via video

Relatively unknown businessman Andrew Thorn was thrust into the public spotlight this week after his company's $100,000 cash drop turned violent.

Greenback Ecommerce Ltd, trading as The Safety Warehouse, is being investigated by the Commerce Commission after last Saturday's disastrous event in Auckland's Aotea Square.

Surprise turned to anger as a crowd of 1000 – some of whom had travelled from as far as Palmerston North – discovered some of the money was fake and could be used as vouchers for the store.

Violence erupted as bottles were thrown at a Safety Warehouse vehicle and a staff member was taken to hospital with glass in their eyes.

Thorn, who has been involved in a variety of businesses, has also recently been issued with a bankruptcy notice by the High Court at Auckland.

On November 11 this year, a notice was published that FleetPartners Group, as a creditor, has requested the High Court to issue a bankruptcy notice against him.

It said that within 10 working days after publication of the notice, Thorn must pay $79,299.25 pursuant to a judgment obtained in the District Court in November 2017.

The High Court told the Herald this week nothing further has been filed but the creditors have up to three months from the act of bankruptcy to file the creditors' application.

Thorn, who is the sole director of Greenback Ecommerce, which is owned by investments company Greenback Trustees Limited and has Thorn as its sole director and shareholder, has been no stranger to business troubles.

He was behind two companies which have been liquidated in recent years, including a Christchurch engineering firm involved in a public transport project.

Thorn Engineering Limited was placed into liquidation by the High Court at Christchurch in November 2016 after an application by creditor United Steel . It was part of a larger group of companies known as the Thorn Commercial Group Limited.

In the final liquidators report by PwC from November 2017, Thorn was said to have attributed the failure of the business to a dispute with his former business partner, in what was described as a "joint venture".

A cash drop stunt by Safety Warehouse turned ugly when the crowd discovered the money wasn't real. Photo / Supplied

The liquidators also said Thorn had "hindered our investigation into the company's affairs" by failing to provide company records.

Thorn was referred to the director prohibition unit of the registrar of companies for further investigating.

Thorn's holding company AUX Online Limited, was also placed into liquidation in September 2017.

He was AUX Online's sole director and shareholder, NZ Companies Office records show.

The company was previously known as Thorn Commercial Group Limited and changed its name four months prior to the liquidation order being made.

Violence erupted as bottles were thrown at a Safety Warehouse vehicle and a staff member was taken to hospital with glass in their eyes. Photo / via video

The final liquidators report from September this year showed the company ceased to trade in mid-2016 when the company was evicted from its leasehold premises.

"The plant and equipment of the company was removed from the property at that time and left on the side of the road. These assets disappeared at that time," the report by Insolvency Management reads.

"Investigations confirmed that there were issues with a previous director however given his impecunious state it was not deemed economic to pursue. No further assets were discovered to become available in the liquidation. No actions were uncovered in the liquidators' investigations that would have proven economic to pursue to provide a return for the unsecured creditors in this liquidation with all available funds going to the preferential creditors."

Thorn also had an online alcohol business, Vodka Plus, which ran into difficulties when the Ministry of Health, licensing inspector and police successfully opposed an application for an off-licence in 2017, a licensing committee decision reads.

In 2018 another of Thorn's companies, Silverback Events, was behind a music event in Christchurch's red zone which resulted in several noise complaints from nearby residents, Stuff reported at the time.

Thorn has also faced criminal charges in the Christchurch District Court after being accused of trying to run down a woman in a company car, Stuff reported.

He pleaded guilty to driving in a dangerous manner and failing to provide police with details about a driver, Stuff reported, before being fined $1000, ordered to pay $2500 in emotional harm reparation and disqualified from driving for six months.

Thorn has defended Safety Warehouse's marketing and cash drop and said "real funds" were distributed at the event.

"In truth, real funds were given away as anticipated. The vouchers that were also presented at the event were in addition to the cash that was given away. We never could have expected the inclusion of the vouchers would have created such hostility and a misunderstood narrative.

"There was no intent to deprive, mislead or embarrass any person of any demographic or race."

Thorn said a group at the event "ruined it for all".

He told the Herald he would be making a statement about his business dealings later today.