Sportcraft Marine Ltd and Sportcraft Boats Ltd in Hewletts Rd, Mount Maunganui have been placed into liquidation by IRD. Photo / Sandra Conchie
Sportcraft Marine Ltd and Sportcraft Boats Ltd in Hewletts Rd, Mount Maunganui have been placed into liquidation by IRD. Photo / Sandra Conchie
Rising material costs and problems hiring staff after the pandemic have been blamed for a boat business being unable to meet its tax obligations and becoming insolvent to the point where it now has an estimated $3.6 million in liabilities.
The first liquidators’ report on Sportcraft Marine showedthe total estimated shortfall to creditors is $1.97m but Sportcraft Boats’ creditors are claiming a further $1.69m, bringing the total to $3.6m.
PwC’s Wendy Somerville and Malcolm Hollis were appointed joint liquidators of the two companies last month after Inland Revenue applied to the High Courts at Tauranga and Hamilton for liquidations.
“We have been advised that the reasons for the company’s insolvency were increased costs of materials and difficulty hiring staff following the Covid-19 pandemic. The companies were placed into liquidation due to unpaid tax obligations,” the liquidators said.
The companies traded from a leased site at Hewletts Rd in Mount Maunganui, and Sportcraft Boats’ other branch in Thames St, Morrinsville.
Sportcraft Boat’s creditors include Fletcher Steel, the ANZ Bank, Wakefield Metals, Griffiths Equipment and Perry Metal Protection.
Sportcraft Marine’s creditors include ANZ, Power and Marine, Lusty & Blundell, Vetus-Maxwell Apac, HCB Technologies, Metropolitian Glass, Value Tyres, Eltrade Industries and Giant Rentals.
Assets include vehicles, boats, boat parts and equipment, retail fitout and tools. These will be sold via public auctions this month and next.
The companies also had possession of boats that were to be sold on behalf of other people.
Sportcraft Marine Ltd and Sportcraft Boats Ltd have both been placed into liquidation after IRD applied to the Tauranga and Hamilton High Courts on August 12, 2024. Photo / Sandra Conchie
“We are in the process of identifying the owners of these boats to return them,” the liquidators said.
Sportcraft Marine owes $106,000 in wages and holiday pay to five employees. Sportcraft Boats has wages and holiday pay also outstanding to two employees but no sum was stated.
Inland Revenue had filed preferential claims for outstanding GST, PAYE and other deductions amounting to $712,000 for Sportcraft Marine and $384,000 for Sportcraft Boats.
Unsecured creditors claim a further $316,000 from Sportcraft Boats while Sportcraft Marine creditors are claiming $564,000.
Mike Rodger Upholstery, Absolute Marine, ACC, Boc Gases, Firebird Marine, Fusion Fabrication, Kiwi Yachting, the Marine Industry Association, Matamata Piako District Council, Mercury Marine, Mobil Oil and others are listed as other creditors of both businesses.
NZ Companies Office records show the directors of the two companies are James Black (known as Jamie) from Ōmokoroa, and Benjamin Black and Spencer Black, both from Morrinsville. The three directors are also the shareholders of the two companies.
According to its website, Sportcraft Boats was a family marine business that started in Morrinsville in 1989 and had two stores: one in Hewletts Rd and the other in Thames St, Morrinsville.
Sportcraft Marine’s Mount Maunganui branch opened in 2002.
The two companies specialised in selling and servicing trailer boats and outdoor motors, both new and used, with fully certified marine chandlery and accessories.
Sandra Conchie of the Bay of Plenty Times reported last month on a visit to Sportcraft Marine’s Hewletts Rd branch. A sign erected by Realtycom real estate agency near the entrance to the property advertised the vendors’ leasehold interest for sale at $1,325,000.
This included the 3600sq m plot of land and 756sq m building area.
A Realtycom spokesman said the property was owned by the Tauranga City Council, with the vendors’ leasehold interest administered by the Tauranga Airport Authority and the current lease runs until 2045. As of August 2, the property was still available for lease.
A city council spokeswoman said the council was not involved in advertising the vendors’ leasehold interests for sale.
Anne Gibson has been the Herald’s property editor for 24 years, written books and covered property extensively here and overseas.
