Business & Finance

DNA Global Liquidation Reveals $2.5 Million Debt to Creditors

By Tom Raynel

DNA Global, a New Zealand retailer, failed to secure refinancing and has appointed liquidators. The liquidators’ statement shows the company has five secured creditors and 43 preferential and unsecured creditors, including Mainfreight, New Zealand Customs and the Accident Compensation Corporation. BNZ Bank holds a registered security interest over all present and after‑acquired property, with the amount still to be determined. Crown Equipment and BMW Financial Services have security interests over motor vehicles, and Stellar Machinery over other goods; the amounts owed are unknown. Bizcap NZ has a registered security interest over all present and after‑acquired property, with a debt of $756,000. Assets available for unsecured preferential creditors include $45,000 in retained funds and $452,000 in stock held in retail shops and the warehouse, which also contains customer claims for paid goods. An unknown amount of inventory is listed but has not cleared customs or is still in transit to New Zealand. Employee claims amount to $142,000. An undetermined amount is owed to the IRD for outstanding GST, PAYE and other fees, as well as Customs duties and certain customer claims. Unsecured creditors are owed $362,000 under various lease obligations, with amounts likely to increase significantly. Manufacturers in China are owed US$323,000 (about $576,000 NZD), and NZ‑based suppliers and other creditors are owed $700,000. In total, DNA Global owes creditors of all classes a preliminary amount of $2.5 million. The liquidators, Patel and Reynolds, have secured the retail sites and are centralising inventory for sale. The dividend payout and estimated completion date remain unknown. Tom Raynel, a multimedia business journalist for the Herald, reports on small business, retail and tourism.