The landlord has called in the receivers on Zaggers on The Strand, which opened in a brand new building only three months ago.

The building's developer Redline Holdings placed the entire Zaggers business in receivership last week.

Zaggers has gone into receivership.

The business includes Zaggers Cafe on Chapel Street that opened in 2007 and and Zaggers 2 on The Strand, which opened in December last year.

Receiver Kim Thompson says the intention is to sell the business as a going concern, with each outlet probably going for sale individually. Both businesses are continuing to trade.

'We will sell them individually,” says Kim.

'I can't imagine anyone wanting to take them both on.”

There is considerable interest in the Zaggers Cafe on Chapel Street, says Kim. The businesses are being listed with a number of agencies.

The receivership comes after businesses on The Strand reported a slow summer, though many bars received a boost from the Jazz Festival at Easter.

Bars in the vicinity of The Strand that closed in February include the Grumpy Mole Saloon, the Empire Nightclub and Route 67 on Harrington St. The Steakout Restaurant has also closed.

Zaggers is owned by Tauranga couple Eddie and Wendy Treacey, who are not returning calls.

"Generally in this industry it's in a hold pattern. If the owners are making a healthy living they are ahead of the pack, as most are break-even businesses."