MIRA INFORM REPORT

 

 

Report Date :

05.10.2013

 

IDENTIFICATION DETAILS

 

Name :

MOLLERS HOMEWARES LIMITED

 

 

Formerly Known As :

MOLLERS TEXTILES LIMITED

 

 

Registered Office :

64 Porana Road, Hillcrest, Auckland, Zip/postal code 0627

 

 

Country :

New Zealand

 

 

Date of Incorporation :

03.10.1975

 

 

Com. Reg. No.:

96108

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Subject is in receivership since 24 May 2013

Subject was previously engaged in importer, manufacturer and distributor of home furnishing products

 

 

No. of Employees :

Not Available 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

Limited with full security

 

Status :

Poor

Payment Behaviour :

Slow

Litigation :

---

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – March 31st 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

New Zealand

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

new Zealand ECONOMIC OVERVIEW

 

Over the past 20 years the government has transformed New Zealand from an agrarian economy dependent on concessionary British market access to a more industrialized, free market economy that can compete globally. This dynamic growth has boosted real incomes - but left behind some at the bottom of the ladder - and broadened and deepened the technological capabilities of the industrial sector. Per capita income rose for ten consecutive years until 2007 in purchasing power parity terms, but fell in 2008-09. Debt-driven consumer spending drove robust growth in the first half of the decade, helping fuel a large balance of payments deficit that posed a challenge for economic managers. Inflationary pressures caused the central bank to raise its key rate steadily from January 2004 until it was among the highest in the OECD in 2007-08; international capital inflows attracted to the high rates further strengthened the currency and housing market, however, aggravating the current account deficit. The economy fell into recession before the start of the global financial crisis and contracted for five consecutive quarters in 2008-09. In line with global peers, the central bank cut interest rates aggressively and the government developed fiscal stimulus measures. The economy posted a 2% decline in 2009, but pulled out of recession late in the year, and achieved roughly 2% per year growth in 2010-12. Nevertheless, key trade sectors remain vulnerable to weak external demand. The government plans to raise productivity growth and develop infrastructure, while reining in government spending.

 

Source : CIA

 


IDENTIFICATION DETAILS

 

Verified Address

Subject name :              MOLLERS HOMEWARES LIMITED

 

Business address :        64 Porana Road

Town :                           Hillcrest

Province :                      Auckland

Zip/postal code :            0627

Country :                       New Zealand

Tel :                              +64 9 4442777

Fax :                             +64 9 4445454

Email :                          mollers@mollers.co.nz

Website :                      www.mollers.co.nz

 

 

Registered address :      64 Porana Road

Town :                           Hillcrest

Province :                      Auckland

Zip/postal code :            0627

Country :                       New Zealand

 

Comments :                  The Subject provided collateral security to Westpac as one of the guarantors of

LANE WALKER RUDKIN INDUSTRIES LIMITED (Superior Holding Company)

debt. Following the default of LANE WALKER RUDKIN INDUSTRIES LIMITED

the guarantees of certain associated entities including the Subject, have been

called up but have been unable to be satisfied. As a result of this default, the

Subject was placed in receivership on 24 May 2013.

 

The representative contacted Ms. Jane Misa advised that the business assets of

the Subject have been taken over by another entity DALCOOK GROUP

LIMITED under New Zealand Company Number: 4626580. The Subject is now

in receivership and will soon be winding up. The contact number of the Subject

+64 9 4442777 is now directed to DALCOOK GROUP LIMITED.

 

Mailing Address:          P O Box 100777 North Share Mai Centre Auckland, New Zealand

 

SUMMARY DETAILS

 

Executive Summary

Date founded or registered :        03/10/1975

Legal form :                               Private Limited Company

Chief executive :                        George Weejone Gin

Issued & paid up capital :           NZD 1,260,000

Line of business :                       In receivership since 24 May 2013.

Staff employed :                         Nil (Subject)

 

SUMMARY DETAILS

 

CREDIT RISK OPINION

 

Company Analysis

Country risk :                             Country risk is minimal

Operation trend :                        Operational trend is ceased

Management experience :           Management is inadequately experienced

Financial performance :              Financial performance is undetermined

Organization structure :              Organizational structure is flawed

Detrimental :                  Serious detrimental found

Payment history :                      Serious payment delays noted

Comments :                              The Subject provided collateral security to Westpac as one of the guarantors of

LANE WALKER RUDKIN INDUSTRIES LIMITED (Superior Holding Company)

debt. Following the default of LANE WALKER RUDKIN INDUSTRIES LIMITED

the guarantees of certain associated entities including the Subject, have been

called up but have been unable to be satisfied. As a result of this default, the

Subject was placed in receivership on 24 May 2013.

 

 

STATUTORY DETAILS

 

Registry Data

Registration date :                      03/10/1975

Legal form :                               Private Limited Company

Registration no                          96108

Registered authority :                 New Zealand Companies Office

Registry status :                        In Receivership

Previous name :                         MOLLERS TEXTILES LIMITED (until 25-05-2004)

MOLLER BROTHERS LIMITED (until 01-08-1994)

EXPORT MANUFACTURERS LIMITED (until 11-05-1990)

Change of legal form :                 None reported.

 

Comments :                              The Subject provided collateral security to Westpac as one of the guarantors of

LANE WALKER RUDKIN INDUSTRIES LIMITED (Superior Holding Company)

debt. Following the default of LANE WALKER RUDKIN INDUSTRIES LIMITED

the guarantees of certain associated entities including the Subject, have been

called up but have been unable to be satisfied. As a result of this default, the

 

Subject was placed in receivership on 24 May 2013.

 

 

 

MANAGEMENT / DIRECTORS

 

Key Management

Name :                          George Weejone Gin

Designation :                 Managing Director

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

Name :                          George Weejone Gin

Designation :                 Director

Appointment date :         28/04/09

Address :                      C/o MOLLERS HOMEWARES LIMITED

64 Porana Road

Hillcrest, Auckland 0627

New Zealand

 

Name :                          John Joseph Cregten

Designation :                 Receiver

Appointment date :         24/05/13

Address :                      C/o CORPORATE FINANCE LIMITED

Level 12, AMP Centre

29 Customs Street West

Auckland Central, Auckland 1010

New Zealand

 

Name :                          Justin James Bosley

Designation :                 Receiver

Appointment date :         24/05/13

Address :                      C/o CORPORATE FINANCE LIMITED

Level 12, AMP Centre

29 Customs Street West

Auckland Central, Auckland 1010

New Zealand

Staff employed :             Nil (Subject)

 

SHARE CAPITAL

 

Composition

Authorized Capital :        NZD 1,260,000

No of shares :                1,260,000 Shares

Share par value :            NZD 1

Issued capital :              NZD 1,260,000

Paid up capital :             NZD 1,260,000

 

 


OWNERSHIP / SHAREHOLDERS

 

How listed :                               Full List

 

 

Composition

Shareholder name :                    POD LIMITED

Address :                                  64 Porana Road

Hillcrest, Auckland 0627

New Zealand

No. of shares :                           1,260,000 Shares

% of shares :                             100%

 

 

RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

Name :                          STIRLING CORPORATION LIMITED

Affiliation type :              Ultimate Holding Company

Address :                      5 Durham Street

Sydenham, Christchurch 8023

New Zealand

Comments :                  The company is 100% owned by Kenneth James Anderson.

 

Name :                          LANE WALKER RUDKIN INDUSTRIES LIMITED

Affiliation type :              Superior Holding Company

Address :                      C/o BDO CHRISTCHURCH LIMITED

30 Sir William Pickering Drive

Burnside, Christchurch 8053

New Zealand

Comments :                  LANE WALKER RUDKIN INDUSTRIES LIMITED is in receivership since 28 April 2009.

 

Name :                          LWR MANUFACTURING LIMITED

Affiliation type :              Intermediate Holding Company

Address :                      C/o BDO CHRISTCHURCH LIMITED

30 Sir William Pickering Drive

Burnside, Christchurch 8053

New Zealand

Comments :                  LWR MANUFACTURING LIMITED is in receivership since 28 April 2009.

 

Name :                          POD LIMITED

Affiliation type :              Parent Company

Address :                      64 Porana Road

Hillcrest, Auckland 0627

New Zealand


Name :                          LWR (DTIL) LIMITED

Affiliation type :              Sister Company

Address :                      64 Porana Road

Hillcrest, Auckland 0627

New Zealand

 

BANK & MORTGAGES

 

Bank Details

Name of bank :              Westpac New Zealand Limited

Address :                      New Zealand

Account details :            Current Account

 

Comments :                  It is generally not the policy of local banks to provide credit status information to

non related parties, however interested parties would be advised to consult first

with the Subject if banker's references are required.

 

Mortgages :                  None reported.

 

Legal Fillings

Bankruptcy fillings :        None reported.

Court judgements :         None reported.

Tax liens :                     None reported.

Others :                                    None reported.

 

 

FINANCIAL DATA

 

Description

Comments :                  The Subject is in receivership since 24 May 2013 hence financial information is

not available with the New Zealand Companies Office.

 

Private Companies in New Zealand are not required to file accounts unless classified as "Large", which at the moment means that two out of the following:

 

- The company has a sales turnover of over NZD 20,000,000;

- The company has total assets of over NZD 10,000,000;

- The company employs 50 people or more.

 

The Subject does not meet the criteria of being a large Private Company

 


OPERATION DETAILS

 

Main activities :              The Subject is in receivership since 24 May 2013. The Subject was

previously engaged in import, manufacturing and distribution of home

furnishing products.

 

 

Purchases

Local :                          None reported.

International :                 None reported.

 

 

Sales

Local :                          None reported.

International :                 None reported.

Key events :                  28 April, 2009

Lane Walker Rudkin in receivership

 

Clothing manufacturer Lane Walker Rudkin Industries - which employs

nearly 500 staff in New Zealand and Australia - has been placed in

receivership, banker Westpac says.

 

The Christchurch-headquartered company has gone into into receivership

with Westpac appointing BDO Spicers as the receiver-manager.

 

LWRI is 100 per cent owed by Christchurch's Ken Anderson, according to

the Companies Office, who two years ago recounted to The Press that the

company had a history going back to 1904.

 

BDO Spicers partners Brian Mayo-Smith and Stephen Tubbs, in a

statement said the appointment by bankers was to protect the financial

position of LWR and its subsidiary Pod while issues facing the group are

resolved.

 

''The LWR operations are currently unprofitable and have incurred a

substantial increase in bank debt.''

 

Anderson purchased LWR in 2001 and Pod (until then owned by a group of

businessmen including George Gould) in 2007.

 

LWR is a diversified manufacturer of clothing and textiles with operations in

several locations in New Zealand and Australia.

 

Approximately 470 people were employed in textile, hosiery, underwear

and garment factories in Christchurch; garment manufacture in Greytown

and Pahiatua; a sock factory in Timaru; and a sports apparel factory in

Brisbane.

 

Pod comprises fabric maker Designer Textiles International, clothing

designer and manufacturer Michele Ann and Mollers Homewares, all

located in Auckland.

 

Tubbs said receivers now had full control over all the businesses. There

would be a clear distinction in direction and day-to-day management

between the LWR and Pod operations.

 

Information available up to this point would appear to indicate that the Pod

operations are profitable and cash positive, Tubbs said.

''These operations will be ring-fenced under a dedicated board and

management structure reporting to the receivers.

 

''The current chief executive and chief financial officer, Malcolm

Walkinshaw and George Gin, will remain in place under these

arrangements.''

 

It was understood the bank would provide additional finance to ensure the

short-term liquidity and flexibility of the Pod businesses.

 

Source: www.stuff.co.nz

 

28 April, 2009

470 jobs at risk at textile and garment manufacturer

 

Four hundred and seventy jobs are at risk at South Island textile and

garment manufacturer Lane Walker Rudkin Industries following the

appointment of receivers to protect the company's financial position.

LWR’s bankers have appointed Brian Mayo-Smith and Stephen Tubbs,

partners in BDO Spicers to protect the financial position of LWR and its

subsidiary Pod while "issues facing the group are resolved", Mr Tubbs said

in a statement this afternoon.

 

"The LWR operations are currently unprofitable and have incurred a

substantial increase in bank debt."

 

The group, owned by Christchurch businessman Ken Anderson, employs

470 people in in Christchurch, Greytown, Pahiatua, Timaru and Brisbane.

Auckland-based subsidiary Pod comprises fabric maker Designer Textiles

International, clothing designer and manufacturer Michele Ann and Mollers

Homewares.

 

Mr Tubbs said there would be a "clear distinction in direction and

day-to-day management between the LWR and Pod operations".

 

“Information available up to this point would appear to indicate that the Pod

operations are profitable and cash positive. These operations will be

‘ring-fenced’ under a dedicated board and management structure

reporting to the receivers. The current Chief Executive and Chief Financial

Officer, Malcolm Walkinshaw and George Gin, will remain in place under

these arrangements. We understand that the bank will provide additional

finance to ensure the short-term liquidity and flexibility of the Pod

businesses.”

 

More information would be required before any decision could be made on

the LWR business, however.

 

 “What we can be sure of is that the decision to appoint receivers has not

been taken lightly," said Mr Tubbs. "It has become unavoidable through a

significant deterioration in the overall financial position of the LWR

businesses."

 

Mr Tubbs said the receivers hope to be able to make further information

available in the next two weeks.

Source: www.3news.co.nz

 

Property & Assets

Premises :                    The Subject was previously operating from the verified heading address

consisting of a production facility, warehouse and an administrative office

however this premises is no longer occupied by the Subject.

Branches :                    None reported.

PERATION DETAILS

 

SUMMARIZED COUNTRY RISK

 

Gross Domestic Products (GDP) & Economic Overview

Central bank :                                                    Reserve Bank of New Zealand

Reserve of foreign exchange & gold :                   US$ 20.562 billion

Gross domestic product - GDP :                         US$ 180.548 billion

GPP (Purchasing power parity) :                         126.628 billion of International dollars

GDP per capita - current prices :                         US$ 40,454

GDP - composition by sector :                            agriculture: 4.7%

industry: 24%

services: 71.3%

 

Inflation :                                                           2009: 2.1%

2010: 2.3%

2011: 4%

 

Unemployment rate :                                          2009: 6.1%

2010: 6.5%

2011: 6.5%

 

Public debt

(General Government gross debt as

a % GDP)                                                         2009: 26.1%

2010: 32.3%

2011: 37%

 

Government bond ratings :                                  Standard & Poor's: AA+/Stable/A-1+

Moody's rating: Aaa

Moody's outlook: STA

 

Market value of publicly traded shares                  US$67.061 billion

 

Largest companies in the country :                      Westpac Limited, Transpower, Fletcher Building Limited,

National Bank of New Zealand, Fonterra Co-Operative Group Ltd, Air New Zealand Limited, The Warehouse Group Limited, Progressive Enterprises Ltd

Trade & Competitiveness Overview

Total exports :                                       US$33.24 billion

Exports commodities :                           Dairy products, meat, wood and wood products, fish, machinery

Total imports :                                       US$31.11 billion

Imports commodities :                            Machinery and equipment, vehicles and aircraft, petroleum, electronics,

 

textiles, plastics

 

Export - major partners :                         Australia 22%, US 11.5%, Japan 9.2%, China 5.3%, UK 4.6%

 

Import - major partners :                         Australia 20.7%, China 13.4%, US 9.7%, Japan 9.5%, Singapore 4.9%,

Germany 4.7%

 

FDI Inflows :                                          2008: US$4,598 million

2009: US$-1,293 million

2010: US$561 million

 

FDI Outflows :                                        2008: US$462 million

2009: US$-308 million

2010: US$589 million

 

Best countries for doing business :          3 out of 183 countries

Global competitiveness ranking :             25 (ranking by country on a basis of 142, the first is the best)

 

Country and Population Overview

Total population :                       4.37 million

Total area :                                270,467 km2

Capital :                                    Wellington

Currency :                                 New Zealand dollars (NZD)

Internet users as % of total

Population                                 83%

 


PAYMENT HISTORY

 

Purchase Term

Local :                          None

International :                 None

 

 

Sales Term

Local :                          None

International :                 None

 

 

Trade Reference/ Payment Behaviour

Comments :                  As local and international trade references were not supplied, the Subject's

payment track record history cannot be appropriately determined.

 

 

Investigation Note

Sources :                      Interviews and material provided by the Subject

Other official and local business sources


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.41

UK Pound

1

Rs.99.29

Euro

1

Rs.83.68

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.