Nic Watt’s award-winning Inca Newmarket owes creditors $1.1m: Who wants money?

Inca was on the rooftop of Scentre Group's Westfield Newmarket. Photo / Babiche Martens

Nic Watt’s much-praised rooftop Newmarket restaurant owes creditors $1.1 million including $815,000 to unsecured creditors and $200,000 to Inland Revenue who stand little chance of recovery.

Chris McCullagh and Stephen Lawrence of PKF Corporate Recovery today issued their initial liquidator’s report on the insolvent company which operated the award-winning Inca Newmarket restaurant.

That showed the scale of debts from the operation, in business for four years and supported by a $49,000 small business loan from Inland Revenue.

Inca Watt owes preferential creditors $200,000 but unsecured creditors $800,000. Trade creditors are owed $384,000, the company had a $326,000 shareholder loan, a $55,000 related party loan, plus the $49,000 from IRD as a small business loan.

Watt, the chef and owner, said Inca Newmarket had “exhausted all other financial options available” and the business was no longer sustainable.

Chef Nic Watt said Inca Newmarket couldn't continue.

Inca Watt was only incorporated in 2019 to operate as the restaurant from leased premises, the liquidators said.

It ceased trading last Thursday when shareholders decided to call in the liquidators.

“We understand the company experienced financial difficulties due to the economic climate’s impact on consumer spending and high overheads. The majority shareholder resolved to put the company into liquidation to conduct its orderly wind-up,” McCullagh and Lawrence wrote.

Nicholas William Watt and Andrew James Simpson are the directors of the business, 75 per cent owned by Future Food and 25 per cent owned by Ashley Park Capital.

Inca on the rooftop at Newmarket's Westfield when it operated.

On the plus side of the accounts, the company had $10,758 in the bank, related party loans of $309,000 and petty cash of $647. It’s not known how much money is owned to employees in wages and holiday pay. The restaurant employed 24 staff.

All company assets have now been frozen, as has the bank accounts. The directors have completed a questionnaire and the liquidators have requested records from the company’s lawyer and accountant.

The liquidators have also met landlord Scentre Group, a company listed on the ASX.

“We are currently in discussions with them on how both parties might work together to maximise the value of the assets,” the report said.

An independent auctioneer had been engaged to value all assets which might be sold via a public auction soon.

AllPress Espresso of Drake Street, the ANZ Bank, Coca-Cola Amatil, Vintners New Zealand and Maison Vauron are listed as creditors with a security interest, along with Bidfood, BOC, Mineral, Mt Roskill Cash’n Carry, Hancocks Wine, Spirit and Beer Merchants and Eurovintage also appear, along with DB Breweries, ECLY, Federal Merchants & Co and Negociants NZ.

But the list of creditors without a security interest is much longer and includes Crown-owned entity ACC, insurer Crombie Lockwood, landlord Scentre Shopping Centre Management (NZ), Homegrown Juice Company, Ice Creations, Design Dairy, La Fromagerie (2014), Notoriety Marketing of Herne Bay, Tokyo Food, Ozone Refrigeration and Air Conditioning, PCS Pest Control, Reso Fine Foods, Oil2U, Tickety-Boo Liqueur and The Produce Company.

The liquidators don’t know at this point if any money will be available to those claiming funds. They listed any surplus or deficit as “unknown”.

It’s the second time a business owned by Watt has gone into liquidation in the past six years.

In 2018, True Food and Yoga eatery failed, owing more than $2.4 million to creditors and shareholders.

Employees were owed $38,901 and Inland Revenue was owed $43,320, according to the first liquidator’s report at the time.

Anne Gibson has been the Herald’s property editor for 23 years, has won many awards, written books and covered property extensively here and overseas.