Nido company plunges a double hit for the South Auckland family

Families who have paid bail for Nido furniture are concerned now that the company has been placed under receivership. Photo / Michael Craig

A family in South Auckland got their money back after the border fence torpedoed a planned vacation in Thailand this year – but they may now have lost half again after the collapse of furniture giant Nido.

The Ōtāhuhu family – mother, father, and four children who asked not to be named – paid a down payment of $ 2,470 to Nido for a two- and three-seater sofa two months ago, and the remaining $ 2,470 was to be paid when the bank closed. 16 days would be delivered. weeks.

They are one of many Nido customers who have reached out to the Herald over fear that they will not get their bank or their money back after the company that owns the store, Magsons Hardware Ltd, went into receivership today.

Recipient Conor McElhinney, of McGrathNicol, said the recipients were still reviewing the number of down payments for goods that had not yet been delivered.

For the South Auckland family, it’s a second setback in a year after they were hit by the border fence when the country entered the Covid-19 lockdown in March.

“We booked flights to Thailand,” said the father.

“We got a refund from Singapore Airlines, no problem. That was great.

The money went there [the couch] instead.

“We wanted a different color – we paid a little bit more for it,” he said.

But he was concerned when the construction company that built Nido’s massive 2.7-acre Henderson store, Vijay Holdings, went bankrupt last month.

“I thought, ‘Oh no!’ My partner is pretty broken, ”he said.

“I called them when I heard the construction company was under receivership and thought, fuck this color change, we’ll try to get something with every color. They said there was no more stock, they looked at it in January.”

Another customer said she and her partner also paid half the price of a bank – $ 1,300 – as a down payment, and the bank would arrive in January.

“We are in the process of buying our first home and excitedly, probably stupidly, found a sofa from Nido that we ordered,” she said.

“I just called them and they told me that they cannot release stock or make changes to the orders until they get a ‘revised policy’ from the trustees.

“Quite stressful trying to buy your first home and possibly losing $ 1,300, and we still had $ 1,300 more to go!”

Vinod Kumar, founder of Nido Living, raised $ 62 million to build and open the gigantic store in Henderson.  Photo / Anne Gibson
Vinod Kumar, founder of Nido Living, raised $ 62 million to build and open the gigantic store in Henderson. Photo / Anne Gibson

Nido’s collapse has also stung small investors who funded a $ 62 million financing arrangement to build and open the store. Two Taranaki farmers from the late 1970s and mid 1980s each sink about $ 1 million into the project.

A grandfather told the Herald: “We are parents with children and grandchildren [and] have invested our savings in good faith. It’s hard to believe stocks bought only this year will be affected so quickly. “

The company McGrathNicol has appointed as trustee, Central Assets Investment, is owned by more than 30 investors in Whangārei, Auckland, Edgecumbe, Whakatāne, Te Kūiti, Taupō, Taranaki, Picton, Blenheim, Canterbury and Invercargill.

McElhinney said Nido was providing recipients with information about customers waiting for undelivered orders.

“We will contact them, but if customers have not been contacted by the end of next week, they can contact us directly,” he said.

The email to do this is [email protected]

He said the furniture store would continue to trade and “probably launch some discount campaigns” to free up stocks so that creditors could be repaid. All 100 employees are still working.

Customers who have ordered goods may still be able to obtain those goods when they arrive at suppliers.

But cash would be used to pay back first preferred creditors, then the Inland Revenue, then secured creditors, including Central Assets Investment, and finally unsecured creditors, including customers.

Source link