Red flags were raised about a now-closed Central Otago cafe mere months before it went into liquidation owing more than $400,000.
A prominent Dunedin catering company got the sense things were not going well for Recharge Enterprises Ltd, which operated Clyde’s former Recharge Bar and Cafe, and took action.
The cafe has been sold and the company owes about $418,000.
Kaan’s Catering Supplies — listed as a potential secured creditor — took steps to reduce its risk of exposure which, in the end, meant it was owed “a big fat zero”, general manager Peter Deans said.
“There’ll be other businesses out there that won’t be as fortunate as us.”
Recharge Enterprises ceased trading and was placed into liquidation last month.
The…