Former SPQR owner Chris Rupe declared bankrupt as liquidators claw back restaurant trademark

Chris Rupe, the former owner of Auckland restaurant SPQR, is now bankrupt as liquidators have revealed more about the business' financials. Photo / Dean Purcell

The former owner of SPQR, one of Auckland’s most well-known restaurants, has been declared bankrupt while liquidators have revealed the company’s trademark was transferred to a related party shortly before they were appointed.

The Ponsonby Rd establishment went into liquidation in July last year and was initially estimated to owe more than $2 million to Inland Revenue and other creditors.

Liquidators Christopher McCullagh and Stephen Lawrence of PKF Corporate Recovery & Insolvency have now confirmed in their second report that the business owes $2.3m to creditors.

McCullagh and Lawrence identified two overdrawn shareholder current accounts with a total value of $1,383,176. Both are in the name of former owner and director Chris Rupe, with one under a family trust of which Rupe was the sole director and shareholder.

Rupe submitted a statement of his financial position to confirm he did not have the means to repay the debt and has subsequently been declared bankrupt. The liquidators have filed a claim in Rupe’s bankruptcy.

The report also noted Rupe undertook a sale and transfer of the “SPQR” trademark to a related party prior to liquidation.

McCullagh and Lawrence established that while the sale had not been completed, the trademark was transferred to the related party.

The liquidators recently organised the transfer of the trademark back to the company and are making inquiries to sell the trademark.

The Herald attempted to contact Rupe for comment but did not receive a response.

The sun set on Ponsonby Rd restaurant institution SPQR as liquidators were appointed to the business back in July last year. Photo / Alex Burton

Assets sold but debt remaining

Since being appointed as liquidators in July last year, McCullagh and Lawrence have sold the company’s fixed assets comprising kitchen equipment and dining furniture for a total of $26,304.35 plus GST.

The pair are still inquiring about options to sell a small quantity of beverage stock remaining on hand.

The largest creditor remains Inland Revenue, which is owed $1,066,868.46 concerning employer activities and GST arrears.

The IRD had served a statutory demand on SPQR for tax arrears, but it was unable to pay the debt or negotiate a repayment arrangement, forcing the business into liquidation.

ANZ Bank has a first-ranking general securities agreement (GSA) over the company’s assets. It is owed $263,556.82 in relation to overdraft facilities, credit card and merchant fees.

Liquidators made two distributions to the total of $9854.92 from the proceeds from the sale of the items to which ANZ’s security was attached.

Prospa holds a second-ranking GSA over the company’s assets and submitted a claim for $93,460.54 concerning a loan.

There are a further eight claims from other secured creditors totalling $100,210.03 from parties that hold security interests in specific goods supplied to the company, although the liquidators said it is unlikely any further funds will be available for distribution.

The liquidators received 24 claims from the restaurant’s employees totalling $132,727.47 for outstanding wages and holiday pay, although the liquidators said it is unknown whether any funds will be available for distribution.

There are a further 35 claims from unsecured creditors totalling $664,310.77, which are also unlikely to see any funds distributed to them.

The liquidators expect to wrap up the liquidation within the next 12 months.

New owners

After weeks of speculation about who would take the reins of renowned Ponsonby restaurant SPQR, it was revealed hospitality sisters Bronwyn and Jess Payne picked up the keys in August.

The sisters own Hoppers Garden Bar at 134b Ponsonby Rd and Elmo’s at 151 Ponsonby Rd, adding SPQR at 150 Ponsonby Rd would be a trifecta that makes sense.

A press release announcing their takeover said the site “has been given a new lease of life, having been purchased by two of the suburb’s hottest hospitality stars”. It said they are “set to bring sophistication, spontaneity, theatricality into new genres of inner-city escapism”.

It would not confirm who the operators were, but in the press release, the Payne sisters were confirmed as the new owners.

The release said they “were amongst those mourning the loss of SPQR, but soon saw the opportunity to breathe new life into the legendary site”.

The site has been closed as “much-needed renovations” take place.

Under its new name Jacuzzi, the stage is set for it to open in the coming months.

Tom Raynel is a multimedia business journalist for the Herald, covering small business and retail.