The owners of New Zealand's Burger King franchise have been placed in receivership.
KordaMentha restructuring partner Grant Graham says the COVID-19 lockdown has significantly impacted the food giant’s finances. Graham has been appointed as the company's receiver along with Brendon Gibson, also of KordaMentha.
The receivership is part of a plan to restart the businesses post-lockdown and transition to a new owner, Graham said. The parent shareholding companies that have been placed in receivership are Tango Finance Ltd, Tango New Zealand Ltd, and Antares New Zealand Holdings Ltd.
Gibson said senior management teams remain committed to the business and serving customers.
"The team is also focused on the reopening plan to be implemented once the lockdown is lifted and conditions allow the business to restart."
Speaking to the Epidemic Response Committee on Tuesday, Finance Minister Grant Robertson said it was important to reiterate that it's the parent company in receivership, not the franchise itself.
"The operating subsidiary here in New Zealand is not actually in receivership and I understand that there is a significant amount of work going on a creditor compromise.
"That means, I think, if that creditor compromise comes through, we'll see the operating arm of Burger King in New Zealand continue to be able to trade and then as we move through the [alert] levels continue to be able to operate."