"McDonald Vague's specialised skills, contacts and understanding of the hospitality industry achieve excellent results for creditors."
Hospitality is a 24 hour, seven day a week highly competitive business. You need an insolvency specialist who has the hospitality knowledge and experience to appreciate the challenges you face, and to ensure that you obtain the best possible returns.
Our hospitality experience
We have acted in an advisory role for hospitality business owners and their lenders on numerous occasions. The 'behind the scenes' nature of this work means that our role is usually only known about by the company and/or its lender. Please visit our Restructuring and turnaround page for more information on the services we can provide in this area.
We have also acted as receivers of boutique hotels and luxury lodges. Often these businesses have spectacular locations, but are isolated, and as a result occupancy is low and overheads high. The property boom and easy credit conditions resulted in an over supply of these types of property scattered around the country. Since the credit crunch it has become a buyer's market and these businesses have become almost impossible to sell.
We have assisted secured creditors by focusing on profitability rather than an immediate exit in a depressed market. This allows the asset to be held until the market improves. This requires the secured creditor to wrest control from the borrower by appointing a receiver. In this situation McDonald Vague appoints an experienced manager and implements strategies to make the operation profitable and at the same time looks for potential buyers.
We have a network of trouble-shooting managers who we can place in a business. It is important that they are incentivised correctly to stay focused by remunerating them based on the bottom line. This will increase turnover and at the same time reduce wastage and pilfering.
McDonald Vague's specialised skills, contacts and understanding of the industry achieve excellent results for creditors.
Our strengths and hospitality experience
- We have the ability to quickly take control of a situation and deploy resources as necessary
- Our team can manage both the operational and financial aspects
- We are able to quickly identify risks and implement the appropriate controls
-We have an innate understanding of the lender's needs
- We have extensive knowledge, expertise and technical skills relating to the hospitality sector
- We understand how to work with the media to protect reputation and brand value
Our team has extensive experience managing projects involving:-
- Hotels
- Bars
- Serviced apartments
- Boutique hotels and luxury lodges
- Camping grounds
- Backpackers
- Hostels
Our network of contacts
We have a nationwide network of contacts to call on, including:-
- Valuers
- Real estate agents and resort brokers
- Experienced hotel managers
- International hotel marketing organisations
- Breweries
- Buyers
National resources and capabilities
We have around 16 full-time people on our staff. This includes two Directors and many senior and highly qualified professionals. We also have a number of experienced consultants that we can call upon as and when required. Our offices are located in Auckland and Hamilton.
As a medium-sized firm which only undertakes business recovery and insolvency work, we can operate independently and seldom have conflicts of interest compared to larger, multi-disciplinary firms.
McDonald Vague is a member firm of Chartered Accountants Australia and New Zealand (CAANZ), INSOL (international body of insolvency specialists) and the Forensic Accountants' Special Interest Group. We adhere to the guidelines, rules, regulations and ethics of these bodies and these associations provide an assurance of independence, service and integrity. Our Directors and staff have a varied background, with many having trained at major international firms such as PwC, KPMG and Deloitte.
We are also members of NZCA (an association of independent Chartered Accountants). We are able to undertake assignments anywhere in New Zealand and can align with a local NZCA firm for assistance. McDonald Vague will still control the assignment and ensure the same high level of expertise and service is maintained. Our clients benefit from the associated firm's local experience, as well as more cost effective fees as our travel expenses are reduced.
Services McDonald Vague can offer
We are able to provide the following range of services:
- Restructuring/turnaround advice and implementation
- Profitability and cashflow monitoring
- Strategies for workouts or asset sell-downs
- Security reviews
- Business evaluations/appraisals and due diligence
- Investigating accountant assignments
- Forensic accounting and fraud investigations
- Creditor compromises
- Receiverships
- Voluntary liquidations - solvent companies
- Voluntary liquidations - insolvent companies
- Court appointed liquidations
- Voluntary administration
Hospitality case studies
New Brew 2003 Limited (In Receivership & In Liquidation)
This company operated the New Brew Tavern in Albany. The business was struggling to break even and running low on stock, and its property lease had expired. Having stabilised the business,we marketed it forsale. We were able to repay the secured creditor in full and also retain the brewery’s pourage rights.
Tui Star Holdings Limited (In Receivership & in Liquidation)
This company operated the Kentish Hotel in Waiuku, one of New Zealand's oldest pubs. At the date of receivership the company suffered from cash flow difficulties and low stock, and its gaming machines had been removed by the gaming trust due to missed payments. We quickly established that there was value within the business but various improvements were needed. We retained all key staff and restocked the pub without interrupting trading. As the gaming lounge was an integral part of the business, we reinstated the gaming licence for an18 machine site. This was operational again within six weeks.We also put in place bands and quiz nights to attract more customers.These measures resulted in turnover doubling within four months.
The business was then placed on the market. Having identified a purchaser, we assisted this party to negotiate with the landlord and the brewery. As a result th ebusiness was sold as a going concern and a partial repayment was made to the secured creditor.
Hospitality Assets Limited (In Receivership)
Hospitality Assets operated various bars in and around the Auckland region. Difficult trading conditions in the hospitality industry generally led to it being placed into receivership. Because of the size of the debt and the state of the New Zealand economy at the time, the decision was made to give the market time to improve. Consequently, each venue was audited and two-thirds of the portfolio was ring-fenced to trade on.
McDonald Vague achieved new levels of profitability, attracted new business, traded responsibly and legally and worked with landlords towards ourmutual objectives. Staff development, training and procedures contributed to these achievements.We developed a close working relationship with the client through regular updates, reports and meetings.The final bar was sold in February 2012.
Oasis Properties Limited/Dai Kanae Investments Limited/The Albion Hotel Limited (In Receivership And Liquidation)
Deploying our extensive industry experience, we implemented procedures to stabilise and preserve the business and also to increase profitability. This enabled the hotels to be presented as viable assets for our advertising campaign. We achieved above valuation sales prices for the remaining hotels. This resulted in a significantly better than expected outcome for our appointor.
Investigating accountant reports
We specialise in preparing investigating accountant reports for banks, private security holders and other third parties on the financial affairs and solvency of companies as well as on possible restructuring proposals and options available. We provide reasoned recommendations to our appointors to assist them in making financing determinations, particularly where concerns may be held as to ongoing viability.
For more information on the advisory services we can provide, please visit our Restructuring and Turnaround page.
Our hospitality team
Boris van Delden
Director
Boris van Delden is a highly experienced insolvency practitioner, culminating with his appointment as director at McDonald Vague in 2005. Boris thrives on the energy and vibrancy of McDonald Vague, but mostly enjoys maintaining close contact with his clients. In his eight years with the team he has worked on a large number of liquidations, receiverships, turnaround management projects and business evaluations and appraisals. Read More
Iain McLennan
Director
Iain joined McDonald Vague in 2001, became a consultant to the firm in 2004 and was appointed as a director in July 2010. He has over 20 years experience in business recovery and insolvency. Read More
Keaton Pronk
Senior Insolvency Manager
Keaton is experienced with both personal and corporate insolvency and has dealt with a number of small to large sized businesses. Read More
Contact us to discuss your situation
With our in-depth industry experience, our specialist team can swiftly assess the financial and other challenges facing a hospitality business, and make clear recommendations for action. These recommendations do not always involve a formal insolvency process. We recognise that lenders often prefer to avoid being associated with appointing receivers if at all possible, and also that receivership may not always be the best option.
Where a formal insolvency appointment is required, we can deploy resources without delay, taking control of management and finances and, most importantly, delivering fast, tailored results to the maximum benefit of all parties.
Please contact us for more information or visit our staff profile page for contact details of our Directors. Our advice is provided on a confidential basis and does not commit you to appointing us in any formal capacity.
Our offices are located in Auckland and Hamilton. We also have team members who are fluent in Mandarin and Dutch.