Wholesale Motors Christchurch in liquidation less than month after auction for former PM Helen Clark’s Crown limousine

This Ford LTD V8 Crown Limousine was used to drive around former Prime Minister Helen Clark. Photo / Wholesale Motors

Used vehicle dealer Wholesale Motors Christchurch – the company behind former Prime Minister Helen Clark’s Crown limousine $1 reserve auction last month – is in liquidation.

Wholesale Motors Christchurch was placed into liquidation on June 28 following a special resolution of its shareholders. Brenton Hunt of Insolvency Matters was appointed liquidator.

An initial liquidator’s report said the company struggled through the Covid-19 restrictions, and despite an initial pick-up, activity in recent months had significantly slowed putting pressure on working capital.

Wholesale Motors Christchurch was in the news last month after it acquired and listed for sale on Trade Me the Ford LTD Ba V8 Crown limousine used to drive around Helen Clark from 2005 to 2008, while she was Prime Minister.

At the time, dealer principal Tyson Adams said they had received the car as a trade-in on a Jeep Cherokee Hemi V8 sold a month prior.

“The owner of the Ford was a car enthusiast who took this CR1 Crown car to shows and the like,” Adams said.

The auction for the Ford LTD Ba V8 Crown limousine had reached a bid of $14,000 in its first two days.

According to the liquidator’s report, Wholesale Motors Christchurch owes an estimated $225,000 in Inland Revenue GST and PAYE.

Unsecured creditors – which include ACC, Janssen Insurance and NCC Car Carriers – are owed an estimated $100,000, according to the report.

Janssen Insurance also provided warranty cover for Wholesale Motors Christchurch.

The liquidator’s report said the company’s bank account was in overdraft at liquidation and inventory on hand was financed and refinanced in a new company with the same director in recent months.

Plant and equipment were to be identified and sold. It was estimated to be worth $10,000.

“Initial investigations indicate overdrawn shareholder current accounts,” the liquidator’s report noted.

“The liquidator is undertaking investigations to determine whether there are any claims, and/or other assets that may give rise to additional recoveries for the benefit of creditors.”

Creditors have until July 29 to make a claim and establish any priority. The liquidator said it was not possible to provide a definitive statement as to whether sufficient assets would be realised in order to pay creditors at this stage “... but it is looking unlikely”.

Tyson Adams is listed as the sole director and shareholder.