Closure would be a last resort. We want to try to save jobs.
In the competitive crucible of New Zealand's restaurant industry, Burger Burger — a six-store North Island chain — has entered receivership and administration, a legal threshold that separates collapse from the possibility of renewal. A landlord's action triggered the holding company's receivership, but the operating businesses have been granted the quieter space of voluntary administration, where an insolvency practitioner now holds the fragile task of keeping 80 livelihoods intact. It is a story as old as commerce itself: a business that made money, caught in a sector where making money is no longer enough.
- A landlord's move against the Torbay site set off a chain reaction, pulling Burger Burger's holding company into receivership almost overnight.
- Eighty jobs hang in the balance across six North Island stores, with the Takapuna location already dark for a refit and the rest trading on borrowed time.
- Administrator Gareth Hoole is holding the line — keeping stores open, staff paid, and suppliers engaged — while insisting closure remains a last resort.
- The chain's fragmented ownership, spread across more than a dozen stakeholders, complicates any swift rescue and may have deepened the crisis in the first place.
- Hoole is simultaneously courting a buyer and assembling a rescue package, appealing to customers to keep spending as a form of direct support.
- The financial picture remains incomplete until August, leaving staff, creditors, and the public in a holding pattern as the insolvency team bets on a viable business beneath the distress.
Burger Burger, the six-store North Island burger chain, is in a fight for survival. Its holding company was placed into receivership this week after action by the owner of its Torbay site, but the operating and intellectual property businesses have entered voluntary administration — a legal status designed to create space for restructuring rather than immediate shutdown.
Insolvency practitioner Gareth Hoole is now running day-to-day operations with a clear priority: keep the stores open and protect the roughly 80 jobs that depend on them. Five of the six locations remain trading; Takapuna is temporarily closed for a refit. "Closure of the stores would be a last resort," Hoole said, framing voluntary administration as the tool it was designed to be — a chance to rehabilitate, not simply wind down.
The ownership structure is fragmented, with SMB Investment Trustee holding nearly 58 percent, Morrow 1 Limited Partnership just over 17 percent, and Adrian Chilton close to 14 percent, alongside eleven other investors. That complexity may have contributed to the difficulties now facing the business.
Hoole's strategy is twofold: keep trading while pursuing either an independent rescue package or a buyer willing to take the chain on. He has appealed directly to customers, noting that the business has been profitable but that New Zealand's restaurant sector is under severe and sustained pressure. A detailed report on assets and liabilities is due in roughly two weeks, with a fuller receiver's report to follow in August. Receiver Damien Grant offered a note of dry optimism, joking about inspecting the burgers at Commercial Bay himself — a tone that suggests the insolvency team sees something worth saving, if the market is willing to agree.
Burger Burger, the six-store burger chain with locations scattered across the North Island, is fighting to stay alive. The holding company that owns it was placed into receivership this week by a landlord—specifically, the owner of the Torbay site—but the operating businesses themselves have moved into administration, a legal status that gives them breathing room to restructure rather than shut down immediately.
Gareth Hoole, the insolvency practitioner now running the day-to-day operations, is determined to keep the lights on. Five of the six stores remain open; the Takapuna location is closed for refitting. The chain employs about 80 people, and Hoole has made clear that preserving those jobs is his primary goal. "Closure of the stores would be a last resort," he said. The voluntary administration process, he explained, exists precisely for situations like this—to give struggling businesses a chance to rehabilitate rather than simply liquidate.
The ownership structure reveals a business with multiple stakeholders. SMB Investment Trustee, the vehicle for Gilmour and Stephen Buckley, holds the largest stake at nearly 58 percent. Morrow 1 Limited Partnership owns just over 17 percent, and Adrian Chilton holds nearly 14 percent. The remaining shareholders are distributed among the other 11 investors. This fragmented ownership may have contributed to the difficulties the chain now faces.
Hoole's plan is straightforward: keep trading while assembling either a rescue package that would allow the business to continue independently, or find a buyer willing to take it on. He's appealing directly to customers to keep coming back, framing their patronage as a form of support. "It has been profitable. It makes money, but it had got itself into some difficulties because the sector is very challenging right now," he said. The restaurant industry in New Zealand has been under sustained pressure, and Burger Burger is far from alone in struggling.
The first detailed report on the administration—laying out exactly how much the business owes, what assets it holds, and the full scope of the financial picture—won't be available for roughly two weeks. A more comprehensive receiver's report is due in August. Until then, Hoole and his team are focused on maintaining operations, keeping staff, suppliers, and landlords informed, and buying time to explore options. One of the receivers, Damien Grant, struck an optimistic note, joking that he planned to visit the Commercial Bay location and hoped to see the burgers being prepared to his satisfaction. The tone from the insolvency team suggests they believe there's a viable business here worth saving—but the next few months will determine whether the market agrees.
Citações Notáveis
The administration is focused on saving businesses rather than an immediate closure. Our focus is to keep the staff, suppliers and landlords informed so we can keep trading while we work out a rescue plan or seek out a buyer.— Gareth Hoole, administrator
It has been profitable. It makes money, but it had got itself into some difficulties because the sector is very challenging right now.— Gareth Hoole, administrator
A Conversa do Hearth Outra perspectiva sobre a história
Why does a burger chain end up in receivership? These places usually do okay.
The sector is under real pressure right now. Rents, labor costs, supply chain issues—it all adds up. Burger Burger had been profitable, but the margins got squeezed. One bad lease negotiation or a few months of softer sales can tip a business from stable to insolvent fast.
So the landlord of the Torbay store triggered this?
Yes. That's often how it works. A landlord gets worried about unpaid rent or lease terms breaking down, and they push for receivership to protect their position. It's a legal mechanism, not necessarily a sign the whole business is rotten.
But now it's in administration instead. That's different, right?
Completely different. Receivership is about protecting creditors. Administration is about trying to save the business. Hoole has control now, and his job is to either fix it or find someone who can. The staff and customers matter in this scenario.
Eighty people work there. What happens to them if this fails?
That's the real weight of it. They're the reason Hoole is pushing so hard to keep the stores open and find a buyer. If administration fails and the business liquidates, those jobs disappear. But if he can stabilize things over the next few months, there's a path forward.
Is there actually a buyer out there?
That's the unknown. There are bigger chains, private equity groups, other operators who might see value in an established brand with six locations and customer loyalty. But they'll wait to see the August report first—they need to know what they're actually buying.
What's your read on whether this works?
Hoole sounds like he believes it's saveable. The fact that the business was profitable before things got tight is encouraging. But it depends on whether the sector stabilizes and whether a buyer emerges. The next two months are critical.