Rotorua's Lakeland Queen tourism venture has failed, owing more than $850,000 to creditors.
Mokoia Island Tours and Cruises - which operated the Lakeland Queen paddle steamer - had tried to attract big spending tourists, but Majpie Investments Ltd, the company behind it, is now in receivership.
The business targeted rich
visitors willing to pay $145 for a meal, a cruise across Lake Rotorua and a tour of Mokoia Island. However, there weren't enough clients to keep the business afloat.
James Summers, a Mokoia Island Tours and Cruises director, said the receivership was a "bump in the road".
"We are happy we're in receivership, it's the best thing that could have happened to us," he said.
The Lakeland Queen is for sale for an unknown price in an attempt by the receivers to pay back some of the money owed. Majpie Investments Ltd, is run by Mr Summers and Philip George.
The Lakeland Queen, dubbed the "lady of the lake", is moored at the lakefront and has not been used for the past few months. Mr Summers, who owns Buffalo Sports in Rotorua, and Mr George run an associate company called Mokoia Island Tours, which operates the Scatcat and tours across Lake Rotorua and Mokoia Island.
There were no employees of Majpie at the time of receivership but the business' failure has affected casual workers, including the boat's skippers, waiting staff and Mokoia Island guides and concert party performers.
Head guide Sonny Corbett said losing his job meant he had to pick up other work to make ends meet.
"It's a shame it happened. I believe we had a really good product and we were aiming at the right market," Mr Corbett said.
Majpie Investments Ltd's biggest creditor is Waikato Finance Ltd, which is owed $265,000, followed by the Inland Revenue Department, which is owed $5690.
The remaining 17 creditors are owed more than $580,000. They include Rotorua real estate, accountancy and law firms, the Rotorua District Council, Westpac Bank, Buffalo Sports and Mr George.
Mr Summers said failing in business was just "part of the game". He blamed several things on the failure, including two costly mechanical breakdowns of the Scatcat - one in November last year which saw 40 people being rescued from the lake.
Mr Summers and Mr George would now focus their attention on the Scatcat business.
- DAILY POST (ROTORUA)
