In New Zealand's North Otago region, an organic vegetable enterprise named Organic Solutions, operating as Oamaru Organics, has filed for voluntary liquidation. The primary ownership is split between James Porteous, who holds a 53.45% stake and serves as the sole director, and Australian-based Lanson International Holdings Pty Ltd, with a 46.55% share.
Organic Solutions, noted as a major organic produce supplier in New Zealand's South Island, faced financial challenges highlighted by Porteous. "Long struggled with chronic overstaffing," Porteous stated, attributing significant financial strain and IRS debts to these issues. In an effort to rectify these, he took direct control in August, downsizing the workforce and increasing mechanisation, leading to a 39% rise in per-hectare revenue. Despite these efforts and a proposed repayment plan, the IRD declined the arrangement.
The company plans to maintain its supply operations during the sale of the farm. The 23-hectare property, bought in 2019 after initially focusing on Thai restaurants, was integral to its supply chain but later breached the Overseas Investment Act requirements. This violation occurred due to Lanson International Holdings, with ties to Porteous' associate Marc Lanson, surpassing the permissible 25% stake in New Zealand land purchases.
Liquidator Brenton Hunt disclosed that restaurant closures post-COVID-19 exacerbated financial strains. Collection of assets such as motor vehicles is underway, and land and buildings are slated for sale to address debts. Estimated liabilities include $900,000 in GST and PAYE, $10,000 in staff holiday pay, and unsecured debts totaling $1 million, leading to a shortfall of approximately $1,279,500.
Source: Rural Life