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The Story of Nicolette.

02 Dec 2025 | David Thomas

Nicolette was a owner of two franchise outlets, she put so much money time and effort into he businesses, She operated them sucessfully for may years.  Downtown Auckland decided that a revamp and change was in order so the tennancy of her very sucessful outlets was suspended while construction was taking place.

She opened two other outlets one from a modified 40ft container close to her orignal site, the other a few blocks away.  As required she used the franchisors expensive fitout people, then along came Covid, and Auckland’s CBD became a ghost town.

Nicolette did all she could, but circumstance worked against her.  She was charming to work with, I just wanted to make sure she was okay, she had done nothing wrong, her fate because of timing that could not be forseen.  She chose to bankrupt herself.  Not something you would do lightly, it is a last resort in my view.

“I would like to thank David for turning my life around. For giving me the confidence and information to make the right decision. I had been trying to keep my businesses afloat for more than 2 years and I was in so much financial debt that I didn’t see any way out. I had maxed out my credit cards, my marriage was on the rocks and my stress level was through the roof.

The day I picked up the phone and spoke with David changed my life. I remember him saying to me “tomorrow your life will be different. Leave the worrying to me” and the next morning I woke up for the first time in 2 years without the weight of the world on my shoulders. David made me realise that I hadn’t failed and I wasn’t a failure because my business didn’t succeed. He dealt with the entire liquidation from beginning to end. His commitment to me and my creditors was astounding. He treated me with respect and made me see light at the end of the tunnel. He did his utmost to get the best outcome.

6 months down the line, I have a new life. I have a fantastic new job and I am the happiest I have been in years. I had to liquidate my businesses and declare bankruptcy but it was the best decision I ever made. Hanging onto something because we don’t want to fail is so detrimental to us all and it’s human nature to think things will change…. David, thank you for giving me a new direction in my life. “

Understanding Voluntary Liquidation in New Zealand: What Every Director Should Know
12 Nov 2025 | David Thomas

When financial challenges arise, many directors hesitate to seek help. Voluntary liquidation isn’t a sign of failure; it’s a structured, lawful process that protects directors, employees, and creditors when a business can no longer meet its obligations.

Why Voluntary Liquidation Exists

Voluntary liquidation is a legal mechanism that allows a company to close in an orderly way. Directors appoint a licensed liquidator — such as David Thomas, a Licensed Insolvency Practitioner in New Zealand — to take control, realise company assets, and distribute proceeds fairly to creditors. It’s designed to maintain transparency and reduce risk for everyone involved.

By choosing to act early, directors demonstrate responsibility and often achieve a better outcome than if they wait for court-ordered liquidation or creditor action. This proactive approach also protects directors from potential personal liability.
As David Thomas often advises, “The sooner you act, the more control you retain over how your company winds down.”

The Process, Simplified

Assessment: The liquidator reviews the company’s financial position and confirms insolvency.

Appointment: Directors sign a resolution to liquidate, and a licensed practitioner — such as David Thomas — is formally appointed.

Communication: Creditors and shareholders are notified, and the liquidation is publicly recorded.

Realisation: The liquidator secures and sells company assets.

Distribution: Funds are distributed according to the statutory order of priority.

Finalisation: Once all matters are settled, the company is removed from the Companies Register.

Each step is governed by the Companies Act 1993 and Insolvency Engagement Standards, ensuring compliance and fairness.

When to Consider It

If your company is consistently unable to pay debts when they fall due, or if pressure from creditors is mounting, now is the time to seek advice. The sooner professional guidance is obtained, the more options remain available — including managed wind-downs or restructuring alternatives.
David Thomas and his team provide confidential assessments to help directors understand their position and choose the right next step.

Why Work With a Licensed Insolvency Practitioner

Choosing a qualified, licensed liquidator means the process will be handled professionally, ethically, and in accordance with New Zealand law. It ensures directors are informed, creditors are treated equitably, and every action is transparent and recorded.

David Thomas – Licensed Insolvency Practitioner
Through Liquidation.co.nz, David provides practical, compliant solutions to financial distress for New Zealand companies. Early action makes all the difference — contact David Thomas today for a confidential discussion about your company’s next steps.

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