Covid blamed for bar liquidations

Five companies behind several popular Christchurch hospitality venues – including Welles Street and the Pink Lady rooftop bar – went bust owing more than $800,000, according to official documents.

Hospitality Hub, Welder Events, East Block Hospitality Group, Campbellfield & Co, and Pink Lady Hospitality were placed into liquidation on October 18. The companies also own city centre restaurants Earl and Bottle & Stone.

Director Tom Newfield told liquidator Brenton Hunt the ‘‘fundamental reason’’ the companies had collapsed was ‘‘the impact of Covid-19’’.

‘‘Lockdowns, government restrictions around numbers and a lack of tourist numbers have affected the business,’’ Hunt reported to creditors and shareholders last Thursday.

The companies had about $11,000 of food and beverage stock and about $93,000 in the bank.

Almost $500,000 is owed by Campbellfield & Co and Pink Lady Hospitality.

Campbellfield & Co, which traded as Welles Street, was incorporated in June 2016. It has 68 unsecured creditors that are owed an estimated $120,000.

Two preferential creditors are also listed, with about $40,000 owed for staff wages and holiday pay and $63,000 owed for GST.

Tom Newfield, Sam Campbell and Stacey Newfield are listed as shareholders.

Welles Street opened in 2017 in a converted 1950s warehouse and could hold 400 people. Speaking at the time of opening, Tom Newfield said his aim was to create a ‘‘neighbourhood pub with a cool vibe’’.

It closed for the last time on October 19.

Pink Lady Hospitality was incorporated in January 2018. It has 46 unsecured creditors owed an estimated $200,000.

Two preferential creditors are listed, with about $30,000 owed for staff wages and holiday pay, and $32,700 owed for GST. Thomas Newfield was listed as the only shareholder.