The Bank of New Zealand (BNZ) has suffered a multimillion-dollar loss following the collapse of Waipopo Orchards, a South Canterbury business owned by Waipopo Limited Partnership, an investment group based in the North Island. The orchard operation, located near Temuka, was placed into receivership in February 2024, with PwC appointed as receivers under the terms of BNZ's security agreement.
According to the final report by receivers Malcolm Hollis and Stephen White, BNZ was owed over $7.4 million. However, the sale of the orchard's land and plant in a mortgagee sale only yielded $815,455, of which the bank received $420,515. This left a shortfall of approximately $7 million. Because of this, there were no funds left for other creditors, including Inland Revenue, which was owed nearly $500,000 in unpaid GST, PAYE, and employee deductions.
Waipopo Orchards, which cultivated honeycrisp, royal gala, red delicious, and braeburn apples—mainly for export—along with pears on its 80 hectares, had been struggling with financial pressures stemming from weak overseas market prices and difficult growing conditions. A damaging hailstorm in 2019 significantly impacted the crop, and in more recent years, an oversupply in the market led to pricing and inventory challenges. These factors contributed to mounting cashflow problems, and attempts to raise further capital were unsuccessful.
The limited partnership failed to comply with a farm debt mediation process, allowing BNZ, as the holder of the general security agreement, to appoint receivers. Although Waipopo Limited Partnership later tried to repurchase the business through a deal requiring a $450,000 non-refundable deposit— which it paid—the agreement ultimately fell through and was cancelled.
The business was officially placed into liquidation on March 15, 2024. During the receivership, operations continued in order to harvest the season's crop and maintain the orchard to facilitate a going-concern sale. In addition to the $815,455 mortgagee sale proceeds, other funds included the $450,000 deposit, $415,000 in trading and other receipts, and $120,761 in appointer funding—bringing the total available to $1.798 million.
Of that, $434,149 was paid to orchard staff, $420,515 to BNZ, $408,500 in receivership fees, $107,679 for legal fees, and $74,945 to agents and valuers. Most other expenses were related to the harvesting and general upkeep of the orchard.
Waipopo Limited Partnership originally purchased the orchard from brothers Danny and Peter Bennett in 2016. The following year, in November 2017, the partnership sought $5.85 million from investors, offering a minimum investment of $650,000 for a 10% stake in the business.
Source: www.thepress.co.nz