A single creditor has claimed $1.4 million against collapsed business LeisureCo. This Australian company operated Tauranga City Council owned swimming pools, until July this year, when it went into liquidation and council owned company, Tauranga City Aquatics Limited, took control.
The reasons given to liquidators for the action are that the profits of LeisureCo Tauranga did not meet budgeted forecasts, and ceased to trade resulting in the cancellation of the lease of the TCAL assets.

Baywave, the main fitness centre run by LeisureCo in Tauranga.

LeisureCo NZ is wholly owned by LeisureCo Australia Pty Ltd.
In a report to the Companies Office, the liquidators, PKF Corporate Recovery and Insolvency Ltd, are currently negotiating with TCAL regarding them buying LeisureCo's fixed assets. Any assets TCAL aren't interested in owning will be auctioned. LeisureCo's bank accounts are frozen. The next liquidators report is due in six months.
'Basically we support TCAL's decision to withdraw from LeisureCo,” says Mayor Stuart Crosby.
'They knew they were in trouble in Australia, and it was the Australian arm that dragged the New Zealand arm down with them.”
Liquidator Steve Lawrence says finding the creditors and how much they are owed is proving to be troublesome.
'We have just been put on notice of a claim of $1.4 million, from a single creditor,” says Steve.
'That's quite a substantial claim.”
He wouldn't say who the creditor is. Other creditors include about 129 mostly Tauranga businesses owed about $340,000.
As for whether the city council can be found liable for any of the money owing, the mayor says it will pay any debts it is liable for following the collapse of LeisureCo.
But a decision on whether the council would bail out the local businesses owed money by LeisureCo would not be made for some time yet.
'I have met a number of the people myself in my office,” says Stuart.
'I understand the situation they are in. At this stage we are still waiting to hear from the liquidators, two in this case; one for New Zealand and one in Australia.
'Because the council also has financial issues with LeisureCo, we are waiting to hear through TCAL (Tauranga City Aquatics Ltd).”