Report: Too early to say if all Clerys staff and creditors will be paid in full
A report into the sale and liquidation of Clerys says it is too early to know whether workers and creditors will get paid by the liquidators.
The report, by Junior Minister Ged Nash was presented to Cabinet this morning.
In it, Minister Nash says the law does provide for a situation where assets are kept in one arm of a company, while losses accumulate in another part, which is then liquidated.
The sale of Clerys and the subsequent loss of 400 jobs was criticised when the department store was split into a retail division, which was liquidated, and the assets were sold to an investment group.
There has been no engagement between buyers Natrium and the workforce since the closure.
The operating company for Clerys trading division was wound up yesterday, and the liquidation process has begun.
Minister Nash says he expects that the company's assets should be available to the liquidators, but if that's not the case, then the law will need to be changed.
