News

The number of companies going into receivership has fallen but more businesses are wanting advice on how to avoid financial trouble, according to one of the country's top receivers.

William Black, a partner at McGrathNicol who handled the South Canterbury Finance receivership, said there had been a decline in companies going to the wall in the past nine to 12 months.

"It's not a sudden occurrence ... but it is swinging more to the advisory side."

Black said the switch reflected a slow economic recovery which was also seen in lower provisioning being set aside by the banks. Black said a lot of companies had accepted tougher times as the new normal but some still had not recognised the situation.

"It is a new environment we are in."

Black said those sectors still struggling included parts of the retail industry, print and some parts of the agricultural sector.

"There are some pockets of dairy which have got issues but it's more outside of that in aquaculture and viticulture."

Last month, popular wedding and event venue Ascension Wine Estate was placed into receivership. The Matakana winery, with a CV of $2.3 million for land and buildings, has been put up for sale

Black said the biggest red flag that pointed to a company struggling was its cashflow.

"Businesses that have cash don't tend to fail."

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