Liquidation for closed Napier education provider Workforce Development

Hawke’s Bay tertiary education provider Workforce Development, which closed its Onekawa industrial district doors in April with staff unpaid for seven weeks, has been placed in liquidation.

The Onekawa Industrial District offices of Workforce Development in Ford Rd, soon after closing two months ago. Photo / Warren Buckland.

The order was made in the High Court last week, on an application lodged by the Commissioner of Inland Revenue, and means unsecured assets are to be sold to repay debtors after an indication the company, which had been operating for more than 30 years, was unable to pay its debts.

It had 22 staff, mainly in Napier, and Hawke’s Bay Today understands most were paid overdue wages by director Mike Smith. Wages were delayed leading-up to last Christmas, and, while working on with commitments to about 40 students, they hadn’t been paid at all since the first week of February.

Tertiary Education Commission chief executive Tim Fowler said in April that the commission stopped funding Workforce Development in June last year after an investigation showed it was not complying with funding conditions, and the company was unable to secure further contracts.

An investigation had identified a funding recovery of $307,651 related to incorrectly claimed Fees Free funding, but 1News reported in April that sums owed could total $1 million.

Staff who lost their jobs are continuing with a complaint to the Employment Relations Authority, with mediation understood to be in the near future, but all debt claimants have until July 19 to lodge their interest with liquidators Wendy Somerville and Richard Nacey, of PwC New Zealand.