30 Rotorua businesses closed in past year

More than 30 Rotorua companies have closed their doors permanently in the past year, with even more expected to close this year.
Between March 2010 and April 2011, 31 companies in the Rotorua district were put into liquidation and/or receivership.
Some had been put into receivership and two had been struck off, which means the liquidation had been completed and the company had been removed from the companies' register.
Nationally, 3025 companies were put into liquidation between April 1, 2010 and March 31, 2011 while 365 companies were placed into receivership.
Rotorua businesses put into liquidation included a property developer, two motels, a cafe, landscape and garden supplies, commercial cleaning, a gym, advertising, drainage, forestry, transport, building, security locks and glazing, joinery, family investments, painting and decorating, farming, timber manufacturing, vehicle glass repairs, real estate and a liquor outlet.
In some cases the business shareholders chose to go into liquidation while in other cases the liquidations were ordered by the High Court.
At least a third of the companies cited financial difficulties, "insurmountable" debts and a downturn in the economy as reasons why they had failed.
In some instances, the companies had previously ceased trading while in other cases the companies had been put into liquidation but had been, or were going, to be sold as a going concern.
Accidents or the death of a company director had also led to liquidations.
It was not clear how many staff had been affected by the liquidations in Rotorua.
However, RHB Chartered Accountants liquidator Kenneth Brown said his company had been involved in liquidating five Rotorua companies and putting another into receivership in the past year, which had led to about 46 job losses. Mr Brown said the number of liquidations dealt with was a fraction up on the previous year when there were three liquidations.
A Rotorua liquidator, who did not want to be named, said he had dealt with two liquidations in the past year although he said the liquidation process started in 2009 and was completed in 2010.
He would not name companies but said one involved a construction company and the other involved a leisure product. The two companies had employed between 8 and 10 staff.
Rotorua Chamber of Commerce chief executive Roger Gordon said he was not surprised at the number of liquidations saying 30 of the chamber's members had closed their businesses and 12 had relocated out of town in the past year.
He said the liquidations represented a "substantial impact on the employment environment of Rotorua".
Mr Gordon said recovery from the global financial crisis had been very patchy.
"There have been some businesses who have recovered quite quickly and there have been some who have struggled. There are many businesses who are still hurting and although I don't want to see it I think we will see additional businesses close this year."
He said the closures would be across the board. Mr Gordon said it was also very difficult for retailers and he was aware of about six retail businesses which had closed in the past year and he knew of one or two which were struggling. He was also aware of three motels for sale in Rotorua.
Earlier this year Rotorua Moteliers Association chairman Glenn Stafford said low occupancy rates at Rotorua motels had forced them to lay off 100 staff over the past three years. It had been so tough several moteliers had sold up.
Mr Gordon said the earthquakes in Christchurch and Japan had not helped. He hoped the Rugby World Cup would boost business and the feedback he had received was that businesses were "holding out" until then.