Hammerheads owed $400k: liquidators

Hammerheads restaurant, which occupies a prime spot in Auckland's Okahu Bay, has gone into liquidation. Photo / Janna Dixon

Auckland waterfront eatery Hammerheads collapsed last in April owing the taxman nearly $400,000, liquidators say.

The restaurant had been one of the longest-running on Auckland's waterfront, having operated from its premises on Tamaki Drive for 25 years until Inland Revenue appointed liquidators on April 24.

The first report of PWC liquidators Craig Sanson and Colin McCloy said Inland Revenue was owed $377,818 and problems with the business were manifold.

The directors told liquidators the business had initially operated well, but began to experience problems following a downturn in business due to the global financial crisis and then faced a crisis following a blaze in 2011.

"A fire occurred causing severe fire and smoke damage requiring the restaurant to be closed for a period of six months. This created extra pressure on the company's cash flow position," the report said.

Directors had sought to sell the business earlier this year but found no buyers, the report said.

The chief assets of the business are various bar and restaurant fittings and fixtures which the liquidators said they would try to sell to whoever took over the buildings' lease.

Read the full report here: