Mad Butcher franchise starts Givealittle for wages

A former franchise manager for Mad Butcher is trying to raise funds to pay staff. Photo / File

A Mad Butcher store in Christchurch is fundraising for staff wages after the franchise was put into liquidation.

Store manager Allan Aitchison set up a Givealittle page seeking $15,000 to pay wages that couldn't be covered when the business went into liquidation.

"We do not have the funds to pay the staff who were a really great team and did not deserve to lose their jobs like this, unfortunately any funds from the business will be taken by the bank to repay debt," he said on the Givealittle page.

"Funds donated will be used to pay the 15 staff that were made redundant as they are just normal working folks and can not afford to take this los[s]," he said.

Aitchison said he had taken it personally that he couldn't afford to pay "these people that have become my friends during their time working in the business".

Aitchison said he could not disclose why the Mad Butcher franchise was terminated.

Michael Morton, chief executive of Mad Butcher, said Aitchison did not renew his franchise agreement and then carried on trading anyway.

"They decided to go independent, which they can't do on our agreement," Morton said.

Morton said Mad Butcher was awarded an injunction against the franchise and that it chose to liquidate after that.

A liquidator's report for franchisee says the injunction was granted on May 5 this year and the company ceased trading three days later.

The liquidator's report for the franchise says it was put into liquidation by resolution of the shareholders with more than $663,000 owing to creditors.

The Givealittle page, created on June 11, has so far raised $750.

Mad Butcher was acquired by NZX-listed food investment company Veritas in 2013. There are 32 Mad Butcher stores across New Zealand. At least eight franchises have been liquidated since 2012.

Aitchison could not be reached for further comment.