Fast food giant Burger King's restaurants in New Zealand have been placed into receivership under strain made worse by the coronavirus lockdown.
The restaurants had been closed since the Level 4 lockdown on March 25.
Grant Graham and Brendon Gibson of KordaMentha were today appointed as receivers.
In a statement, Mr Gibson explained how the restaurants being in lockdown had "significantly impacted the financial position of the business".
He also said the receivership process by Burger King's parent companies - Tango Finance Limited, Tango New Zealand, and Antares New Zealand Holings Limited - was part of a plan to seek support from suppliers and landlords to restart the business after the lockdown lifts.
He said the main goal would then be to sell the business.
Burger King's senior management team will remain committed to the business and focused on serving customers, Mr Gibson said.
"The team is also focused on the reopening plan to be implemented once the lockdown is lifted and conditions allow the business to restart."
When asked today about Burger King's outlook, Finance Minister Grant Robertson told the epidemic select committee that it was "important to recognise it’s the parent company that’s gone into receivership".
"The operating subsidiary here in New Zealand is not actually in receivership, and I understand there is a significant amount of work on a creditor compromise that’s been managed through a receiving company at the moment.
He said if that comes through, "you will see the operating arm of Burger King in New Zealand continue to be able to trade and then as we move through the (alert) levels continue to be able to operate".
He said in 2019 Burger King "had some issues" around the business, and that caution was needed around "prescribing everything to Covid-19".
ACT leader David Seymour commended Mr Robertson on his "level of detailed knowledge and the level of interest you've taken in Burger King".
"I've been tracking it for years, David," Mr Robertson replied.
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