Hospitality liquidations surge by nearly 50 percent over the last 12 months | Stuff.co.nz

Added: 2026-06-03

[00:00:00]Well, the number of Kiwis failing to pay their debts and bills on time is trending down, but there are still almost 100,000 New Zealanders who are more than 90 days in arrears. Credit Bureau Centrix's latest report tells a tale of two islands. The green showing low levels of arrears across the South Island, and the red showing a number of communities in the north are struggling to keep up. Despite affordability pressures, the report found more people are taking on larger mortgages to get on the property ladder. And it says more than 134,000 borrowers have mortgages over $1 million. That is up 15% in a year.

[00:00:40]Well, business credit defaults are trending downwards, but falling 14%, but company liquidations rose 17%. And one of the worst-hit sectors was hospitality with 414 liquidations recorded. That is up nearly 50%. Here is Molly Swift with all of the details.

[00:00:59]>> One by one, more hospitality businesses are having to close. Data released by Centrix today found 414 hospitality businesses went into liquidation over the past year. Even the Prime Minister is worried.

[00:01:13]>> We are concerned in general. I mean, we know we're going through a very difficult and challenging time. The fuel crisis has led to rising costs for a lot of inputs for many businesses in New Zealand, but also around the world.

[00:01:24]>> Hospitality recorded the second highest number of liquidations behind construction in the past year, but it is the fastest rising up 49%.

[00:01:35]It's outpacing those of retail businesses as more firms succumb to the pressures of a slow economy.

[00:01:40]>> I think it's generally linked to consumer demand. So, when things get tight and you have less cash in your pocket, you're not likely to go out for dinner.

[00:01:48]Um you know, you just have to look at your budget and go, "Where Where can I cut expenses?" And hospitality, unfortunately, is one of the obvious ones. Behind me is Verona Bar and Cafe.

[00:01:58]It's been right here in central Auckland for over three decades, but it's recently become one of the many hospitality businesses forced to shut its doors after going into liquidation.

[00:02:08]We spoke to people nearby, many of whom say they're going out to restaurants and cafes less.

[00:02:13]>> I haven't been out to a restaurant probably two or three months. Just really because of the cost, I guess.

[00:02:17]Eating at home is a lot cheaper.

[00:02:19]>> No, the same because we can afford it.

[00:02:22]>> No, I don't. I eat at home, cook at home, and do everything at home, and do what I can to get myself ahead.

[00:02:28]>> I don't know, it's just too expensive.

[00:02:30]>> But as price rises continue to squeeze households, we are getting better at managing our finances.

[00:02:36]>> New Zealand's doing really well. We're in a lot better position than we were the same time last year. So, consumer arrears are a lot lower, 9.5% compared to uh same time last year. However, the number of New Zealanders in serious debt remains relatively the same.

[00:02:51]>> Got 96,000 Kiwis who are in severe delinquency. So, what we mean by that is 90 days or more overdue. They are a little bit sticky. So, when you get that far in debt, it gets harder to recover.

[00:03:02]Um the important thing for those people is that they reach out to their credit providers. They've got teams that are there to help them. But help is too late for businesses having to turn the lights off.