Cherry grower Cherri Global in liquidation, $42m owed

Cherri Global and its subsidiary companies went into liquidation on March 8. Photo / Central Otago NZ

A major cherry grower who went into liquidation earlier this month owes more than $40 million to creditors including Spark, PGG Wrightson and the Ministry of Business, Innovation and Employment.

But a company spokesperson said the figure owed was likely to be less than $24m as half of the amount owed was to mostly inter-related parties.

Cherri Global and its subsidiary companies Cherri Holdings and Cherri Machinery were put into liquidation on March 8 through a special resolution of shareholders.

Janet Sprosen and Stephen White of PricewaterhouseCoopers New Zealand were appointed liquidators.

In their first report, the pair say the three companies faced challenges following the impacts of Cyclone Gabrielle and an unsuccessful attempt to raise new equity to fund the development of the orchards.

This led to the business selling the majority of its property assets and operations, subsequently ceasing trading in November 2024 following the sale.

Cherri Global operated out of the Hawke’s Bay and Otago regions, growing and distributing cherries for the domestic and international markets.

The liquidators noted that so far they only had access to financial reports for the year ended March 31, 2024 but they had requested copies of the companies’ bank statements for the two-year period prior to liquidation from their bank and had access to Xero reports.

Based on the report, Cherri Global has approximately 22 unsecured creditors owed $12,685,420 at the date of liquidation.

Cherri Holdings has approximately six unsecured creditors owed the largest part of the sum, $24,916,478, and Cherri Machinery has approximately four unsecured creditors owed $5,107,796.

At present, the three companies owe a combined 32 unsecured creditors approximately $42,709,694.

Included in that $42.7m are related company loans. Cherri Global has $24,922,853 in related-party advances, most of which is owed by Cherri Holdings and Cherri Machinery.

“It is unlikely that this amount will be received,” the liquidators noted.

Cherri Machinery also has a related-party advance of $5,807,541, which is owed by Cherri Holdings and is also unlikely to be repaid.

The spokesperson said: “Many companies have registered security interests, but that doesn’t automatically mean they are creditors”.

“It is very difficult to get some companies to remove the security from the register even if a company is no longer supplying goods or services.”

Assets and creditors

According to the report, Cherri Global and Cherri Holdings had combined office equipment to the value of $19,196, with Cherri Holdings in possession of plant and machinery worth $3387.

Cherri Machinery also had assets including a motor vehicle worth $4516 and plant and equipment made up of various agricultural machinery and worth an estimated $393,947.

At the date of liquidation, the three companies held combined cash assets valued at $229,201.

The companies' records indicate that there are accounts receivable that may be recoverable, alongside $102,466 of inventory relating to packaging and temperature recorders held by Cherri Global.

Of the three companies, only Cherri Global had employees at the time of liquidation. It had two employees and there is likely to be a claim in the liquidation from those workers.

Inland Revenue is classed as a preferential creditor, despite records not reflecting any outstanding amounts owed. The liquidators are awaiting proof of debt documentation to confirm if this is the case.

The liquidators are also aware that obligations to landlords will be outstanding and amounts will be confirmed following receipt of formal claims.

Known creditors between the three companies include Spark, the Ministry of Business, Innovation and Employment (MBIE) and PGG Wrightson.

White and Sprosen said it is currently not possible to estimate the likelihood of a distribution to creditors, nor an estimated date of completion.

Cherrie Global’s largest shareholder at just over 70% is Pjaft Ltd, which is owned by the Alison Family Trust and Phil Alison. Separately, the trust owns a further 6.74%.

The second-largest shareholder is Brown & Associates Trustees with 15.13%.

Cherri Global chief executive Phil Alison has been contacted for comment.

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