Maketū Pies has gone into voluntary liquidation after five years of losses.
Its owner, Te Arawa Management Ltd, bought the national pie supplier in 2019 during a receivership process but says it has operated at a loss since.
It was, at the time, the town’s largest employer and had operated for about 40 years. It had about 40 staff, mostly locals.
Interim chief executive Tina Kilmister-Blue said the “difficult decision” was made after a “great deal of discussion and deliberation”.
Maketū Foods Ltd, trading as Maketū Pies, went into a solvent liquidation process on Thursday, which meant it would remain operating for now.
Kilmister-Blue said that in a challenging and competitive fast-moving consumer goods sector, the business had operated with losses since it bought it in 2019.
“[Te Arawa Management Ltd] has continued to support the business over the past five years, but can no longer continue to contribute further investment to keep operating.
“This decision has not been made lightly, and a number of alternative operating options have been explored, however, these are not viable.”
Community leaders were told of the liquidation on Thursday in a letter from Kilmister-Blue which was provided to Local Democracy Reporting.
It outlined the sector challenges which included increasing costs and smaller margins and how it could “no longer continue to contribute further investment to keep operating”.
Some “serious” options were investigated but none were viable as they required significant investment.
A solvent liquidation process would “ensure all creditors and our people are paid”.
While the business winds down, BDO liquidators will manage the process.
She ended the letter with: “We appreciate all our people over the lifetime of Maketū Pies have contributed towards a Kiwi icon that will be remembered for years to come”.
Te Arawa Management Ltd is a subsidiary of Te Arawa Lakes Trust.
A notice in the Bay of Plenty Times of the liquidators’ appointment noted January 13 as the last date for creditors to make claims and establish any priority.
Local man Shane Beech, known to some as the Mayor of Maketū, told Local Democracy Reporting the brand was iconic.
Closure and job losses would impact the small town. He did not know how many people worked there but understood it was still Maketū's largest employer.
“Not good times.”
Western Bay of Plenty Maketū-Te Puke ward councillor Grant Dally said a closure would be “quite devastating”.
“It’s an integral part of the community.”
He hoped, however, that another business would see potential in how the building “in the heart of Maketū” offered a good facility for food processing or something else.
Western Bay of Plenty mayor James Denyer said his thoughts were with the workers and their families.
