PHOTO: Organic grocery chain Huckleberry. CAMPAIGN BRIEF NZ
The company behind the organic grocery chain Huckleberry has entered liquidation, affecting three food stores in Auckland and approximately 35 staff members.
Sources indicate that the stores—Huckleberry New Lynn, Huckleberry Glen Innes, and Harvest by Huckleberry in Grey Lynn—will close over the long weekend. Liquidators will prepare for a stock sale scheduled for next week, with the business sale process to follow.
Director Darren Guo explained that he and his business partner exhausted all options for securing additional capital before making the difficult decision to appoint liquidators.
“It’s been a really tough day. It’s heartbreaking,” Guo said. “We had this vision to revitalize this long-standing business, and it’s very disappointing that it has come to this.”
Liquidators Steven Khov and Kieran Jones of Khov Jones were appointed to Huckleberry 2021 Limited. Khov attributed the liquidation to poor trading conditions exacerbated by the aftermath of COVID-19 and the current economic downturn.
BNZ is the first ranking secured creditor, but it is unclear how much Huckleberry owes. Khov noted that there are many creditors, including several small business suppliers, and advised them to seek legal advice if unsure of their position.
Established in the early 1990s, Huckleberry grew from a single specialty organic food store into a health and wellness business. Guo and his partner Mat Hughes invested in the company in late 2021, inheriting losses of about $120,000 per month.
In 2022, Huckleberry partnered with Woolworths in a wholesale agreement to offer a wider selection of goods at lower prices in New Zealand. This followed a Commerce Commission investigation into the grocery sector, recommending that the major supermarket chains sell wholesale goods to smaller competitors.
Guo explained that high interest rates, inflation, and the cost-of-living crisis created a perfect storm for the business. Despite positive results in mid and late 2022, the company saw a significant decrease in demand starting in January, which they initially attributed to seasonality. However, demand did not recover.
Khov indicated that the struggling economy was likely the final straw for Huckleberry, with reduced consumer spending in the niche market of organic and natural wholefoods. He confirmed that the stores would close over the weekend, followed by a sale next week.
The group employed about 25-35 staff members.
SOURCE: NZHERALD