Westie Food Group collapse: Pie distributor owes creditors $5.8m

Receivers Stephen Keen and Stephen White of Teneo were appointed by BNZ to Westie Food Group (WFG) on July 15 after the company defaulted on the terms of its loan agreement. Teneo’s first report into the Avondale-based company said it distributed chilled pies, savouries and ready-to-eat convenience foods, supplying about 700 supermarkets throughout New Zealand.

The company’s best-known product was Westie Pies.

The report noted WFG only marketed and distributed the pies, with an “independent third-party manufacturer operating from the same premises” responsible for baking and packaging.

Receivers said WFG failed after “experiencing cashflow issues, and its creditor position was worsening”.

Secured creditors were owed $2.2m, including $1.2m due to appointer BNZ.

Preferential creditors – employees and Inland Revenue – were owed $337,985.

Unsecured creditors were listed as being owed $3.3m and were warned a full write-off was likely.

Receivers anticipated being able to settle all sums owed to preferential creditors and part-repayment to BNZ.