The company behind the failed Grand Cathedral Square project owes more than $3.6 million to creditors.
Headed by local businessman Darin Rainbird, the company was redeveloping a historic building in Christchurch’s Cathedral Square before encountering financial difficulties. It was placed into liquidation on 25 September 2024.
The Grand launched a crowdfunding campaign in 2020, initially generating significant enthusiasm.
PKF’s Christopher Carey McCullagh and Stephen Mark Lawrence were appointed as joint liquidators after a resolution by creditors.
As first reported by chrislynchmedia.com, a former staff member claimed they were owed $11,000 and had been promised payment by Rainbird, but the payment never materialised.
The former worker said that Rainbird had emailed all staff in May, informing them that funding for the project had dried up. Despite this, he expressed confidence in the email that investment would come through.
The report outlined several reasons behind the company’s financial struggles, including delays and increased costs due to COVID-19, a shortage of building materials, inflation, and issues with promised investments not materialising.
The Grand Cathedral Square Limited had been working to transform a leased building into a tourist retail centre, which was planned to include a bar, restaurant, bakery, gift store, an iSite tourist information centre, and an outdoor plaza.
However, significant delays and cost overruns prevented the completion of the project, and the business never began trading.
Without further investment, the company struggled to meet its financial obligations, resulting in the lease being terminated on 9 August 2024 due to unpaid rent.
The liquidators’ report revealed a detailed list of creditors, including unpaid wages to employees totalling $357,641, a debt of $307,721 to Inland Revenue, and substantial sums owed to major creditors such as Crystal Imports Limited, the former landlord, who is owed $1,289,184.
Other secured creditors include Lion NZ Limited and Bizcap NZ Limited, owed $388,000 and $39,265 respectively.
Trade payables amounted to $781,145, while other loans and hire purchase arrangements added up to $441,154.
Since the commencement of the liquidation, the liquidators have taken various actions, including notifying creditors, freezing the company’s bank accounts, and arranging the sale of remaining assets through Turners, a sales agent.
Assets such as office equipment, plant and equipment, and building improvements were removed from the premises and are scheduled for auction. However, the report indicates that the exact value of these assets remains uncertain, and the liquidators have withheld some valuations to avoid prejudicing the sale process.
