Retailer Camera & Camera has been placed into liquidation, owing nearly $900,000.
The Auckland institution has been operating since 1979 but has seen dwindling customer demand as smartphones complete with cameras have become de rigueur.
Shareholders placed the company into liquidation earlier this month. The first report from joint liquidator Simon Dalton of Gerry Rea Partners says the company traded ‘very successfully’ for many years’, but ‘changes in technology’ lead to a drop in customer demand and a drive to online sales, where competition is fierce’.
“These factors have reduced the company’s turnover and net profit margin to a level that has impacted its ability to cover operating overheads,” the report says.
“The shareholders have therefore agreed that it is prudent to place the company into liquidation.
The report shows estimated debts of $360,048 to secured creditors and $493,620 to unsecured creditors.
Employees are those who are now awaiting the outcome of the liquidation, with more than $40,000 owed to staff. Inland Revenue, also a preferential creditor, is also owed $40,000.
The report shows the company had $45,144 in its bank account and accounts receivable of more than $49,000, however only $40,000 of that is expected to be realised.
A book value of $446,250 has been given to stock on hand, with no estimate of how much of that will be realised.
The report gives no indication of what sort of deficit is expected in the final costs.
Creditors have until May 18 to register their debts or claims.