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LETS GET DOWN TO BUSINESS.

Question :
Hello, I have made the decision to close my hospitality business – restaurant.  All forward bookings have been cancelled.  It was for sale for the 4 months prior to the covid19 crisis however then it had “worth”.  Regular monthly function bookings and also advance bookings and a healthy turnover.  It relies heavily on the tourist trade, both summer and winter as we are close to Tekapo and en-route to Queenstown.  It is in a small older population community, so therefore don’t really have a local base to draw on.  I am now wanting to get out, as I have another career that I can return to that offers a secure income.  My main aim at the moment is to rescue what I can of the initial capital investment that I put in.  I will put it up for sale on trade me for “offers” which will mean that the plant, fixtures and fittings will go to the new owner, but if it doesn’t sell (which I am not hopeful about) how do I get rid of all the plant, fixtures and fittings.  Are there companies that can come in and buy all of this and remove it for them to resell/auction and are they going to want to buy it when they too have no certainty of resale in the current climate.  We currently do not have any debts that we need to cover, as we are all up to date as of 20/4.  The current lease expires 1 July and of course I will not be renewing it, although there is a right of renewal available 3 + 3.  As I have said, all I really want to do is recoup some of my investment so that I do not lose the lot.  Re-opening will result in the need for me to go into debt which I do not want to do.  What is the best way for me to proceed?

Question submitted 22/04/20 @ 03:05pm
Industry: Food & Beverage
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  • Tough call but I was talking to someone this morning that has made a similar decision especially with natural impact of winter coming too.

    Try these guys… https://www.commercialcatering.co.nz/page/

    Commercial catering are one of NZ’s largest and also run silver chef which manage new and second hand rent to own etc.

    They would no doubt give you some further advice as have a nationwide footprint.

    Other than that there are lots of smaller operators in this space too if you google.

    All the best and sorry to hear your news but your making the hard call but probably the right one given your exposure to tourism.

    Hello, as well as Craigs comments also try the folks who do your equipment servicing as they may be looking for equipment or parts to help get going concerns up and running again.

    James

    Good on you for making a clear and decisive call. Agree with Craig and James. I would also look at local auction houses – even over in Dunedin, consider trade me, or even talk with some of the bigger operators in the area who may have equipment needs such as Wayfare or NZ Ski. Hope the process goes as smoothly as possible for you.

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