Liquidator flags insolvent trading by failed café chain Wishbone’s parent

7th April 2026 By Bridget O'Connell | bridget@propertyticker.co.nz | @propertyticker

The liquidator for the parent company of failed wholesale and hospitality brand Wishbone has concluded the company traded while insolvent. 

A sixth report to creditors and shareholders by Mohammed Jan of Liquidation Management for The Woodward Group provided an update on activity from August to February this year, with it now being two-and-a-half years since the company went into liquidation.

“The liquidator conducted a review of the company’s financial position and has determined that the company traded while insolvent,” the liquidator’s report said.

“The director’s conduct has been assessed, including decision-making, record-keeping, use of company funds and compliance with statutory duties. 

“Where indicators of insolvent trading or breaches of duty were identified, further investigations are planned.”

Key director duties under the Companies Act 1993 prohibit a director from agreeing to the company’s business being carried on in a manner that is “likely to create a substantial risk of serious loss to the company’s creditors”.

They also prevent directors from agreeing to a company incurring an obligation including taking on a new debt, unless they believe, on reasonable grounds, that the company will be able to perform that obligation when required.

The liquidator said he was also currently investigating the company’s business transactions to identify any that may be voidable under the Companies Act 1993.

“This includes a review of payments made to creditors and related parties prior to liquidation. Should any transactions be identified that meet the criteria for clawback, the liquidator will take appropriate action to recover those funds for the benefit of creditors.”

As at the date of the report, 151 creditor claims had been tallied totalling $6.8m, including three secured creditors owed $4.1m. Assets totalled $457,000, leaving a deficit of more than $6.3m.

“Any prospect of a distribution to the creditors is dependent upon the quantum of the recovery from the
investigations,” the report said. 

Wellington-headquartered brand Wishbone was founded by directors Andrea Gibson Scarlett and Shayne Scarlett in March 2000, with the opening of a Woodward St shop.

The business grew to operate around 20 Wishbone-branded outlets around the country, and also supplied products to the supermarket channel and wholesaled its pre-made sandwiches and meals to other wholesale customers.

However, it struggled to recover from the pandemic, especially as food and wage costs rose and sales slowed.

The company employed around 110 staff spread between retail outlets, manufacturing, and its Wellington headquarters, when liquidators were called in following a special resolution of shareholders.