It was put into receivership after the liquidation of the construction company building the store, Vijay Holdings, in November. Both companies share the same sole director, Nido founder Vinod Kumar, who was also in charge of a related company which went into liquidation last week, Magsons Investments.
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Nido topped into receivership after the company building the store collapsed in November. Other factors contributing to Magsons Hardware’s failure included trading challenges and a lack of funds to cover losses and ongoing trading costs, the report said. The company had over $13.5m in assets and $22.3 million in liabilities. Other items on its books included $18.22m in intercompany loans and intercompany debt of $10.5m.
All three companies had a common sole director, Nido founder Vinod Kumar. Magsons Investments’ liquidators, Daran Nair and Heiko Draht of Greenlane Chartered Accountants, said the company owned was a part owner of Nido’s property at 158-160 Central Park Drive in Auckland.
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West Auckland furniture store Nido store continues to trade while receivers try to find a buyer. The company entered into a joint venture with Central Park Property Investment, and the venture was registered as Everest Central Investments Limited (ECIL). Initially Magsons Investments had a 20 per cent stake in ECIL but over time the other partner, Central Park, acquired some of Magsons shares. Company records show it no longer holds any.
Prospective tenants were being sought and interest had been “encouraging”, Maat Group told investors. But the lender Pearlfisher, which had provided $28m of development funding, planned to force a mortgagee sale unless some of the money was paid back quickly.
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Furniture and homeware retailer Nido was put into receivership by investors in early December. Maat Group said Pearlfisher had “made it clear that it will sell the property as a mortgagee sale after 28 February 2021” unless it received $2.25m by December 16 and a further $5m by February 28. One option was to sell the property in conjunction with Pearlfisher, but the property might realise sufficient capital to repay Pearlfisher only, and investors would receive “far less than the value of their investment”, Maat Group said.
Nido investors asked for a further $7 25 million to prevent mortgagee sale stuff.co.nz - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from stuff.co.nz Daily Mail and Mail on Sunday newspapers.