Just about every week now there seems to be another business or trade media account of the failures of Rockit, Hawke’s Bay’s miniature apple wunderkind.

Although the causes are not all man-made (local acreage was impacted by a cyclone), they mainly are – fundamental miscalculations of demand, overzealous planting (with overeager growers sharing the blame, including planting in unsuitable soils), one-sided contractual arrangements that derisked corporate at the expense of its partner growers.

BayBuzz reported here on the situation, in an article that described management’s efforts to right the ship.

Yet the Rockit grower liquidations roll on, with perhaps more to come … who knows?

Neither the financial difficulties nor the strategic mistakes arrived overnight or out of the blue.

Which raises the question: When do Rockit’s failures become a matter of poor governance, not ‘merely’ poor management? When do directors front up and admit ‘We messed up’?

In a National Business Review update on the situation in January (paywalled), a reader commented:

“It is reasonable to question a structure where board members, who were directly involved in overseeing licensing and expansion decisions, simultaneously held material interests on the growing side of the business. Even where conflicts may have been formally managed, the perception of misalignment undermines confidence and raises legitimate concerns about accountability and long-term stewardship within Rockit Global.”

Other players in the HB apple biz watch with curiosity, some without pity, others worried about apple industry reputational risk (making capital raising more difficult) and the fate of liquidated assets (i.e., orchards) left twisting in the wind, encumbered by legal issues and restrictions.

Maybe a buyer’s market for orchards if you have spare cash. Stay tuned!