Ngāti Kahungunu’s fisheries business, Takitimu Seafoods Limited, has announced it will close its retail store, online store and wholesale business in Ahuriri, affecting 33 staff.
The business was established in 2019 but had failed to make a profit in the intervening years. Instead, Takitimu has reported losses of $15 million to its shareholder Ngāti Kahungunu Asset Holdings, a media statement said.
Holding company chair Trevor Moeke said losses would be likely to continue given the impact of Cyclone Gabrielle, which had forced the operation to close for six weeks. Instead, it recommended to Ngāti Kahungunu Iwi to close the business.
“We have been working hard to right the waka over the last nine months, but ultimately the business has a directive to be profitable for our iwi, so it can protect the interests of its members, and at the moment it isn’t a viable operation.”
Takitimu also underwent a restructure last year, as well as cutting back on operational costs but Takitimu Seafood Limited chairman Ngahiwi Tomoana said it was still unlikely to turn a profit for some time.
“The iwi has a long term strategic vision to ensure the wellbeing of its people and we need to focus our financial resources on other business opportunities; explore new opportunities as they arise, to create a financial return that ensures Ngāti Kahungunu delivers positive outcomes for its people now and well into the future,” he said.
Tomoana said it was a difficult decision to close and its priority now was to support the 33 full-time and part-time employees.
BayBuzz asked why the business had been unable to make money from what had previously been a profitable business.
Ngāti Kahungunu Iwi Incorporated chair Bayden Barber said the business had been trading in unprecedented times. Firstly, through Covid and then more recently the forced closure due to the cyclone.
“We have worked hard to keep the business operating profitably and return a dividend to the Investment Company. You would have to ask the previous owners about the financial performance and structure that the business operated.”
No fishing operations would remain as Ngāti Kahungunu did not own any fishing boats and all fish was supplied by Moana NZ, Barber said.
The closure did not impact the fishing quota partnerships with Moana NZ and Sealord.
Although the decision not to reopen had been difficult, it was in the best interests of the iwi and its people, he said.
“We have a responsibility to act in the best interests of all members and it has come to a point following the outcome of an independent review along with the prudent advice from our asset holdings company board that the fisheries business would continue to need additional funding.”
The focus would now be on assets that are performing well and have a greater chance of financial success, he said.
“It’s a bottom-line that our business interests are profitable as they ensure we enhance the mana and wellbeing of Ngāti Kahungunu.”
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NGATI Kahungunu Are Crying out for HELP!!!
Bayden jus does Not Have The Competent Attitude Of even trying to Ground The Mahi Let Alone SCALE A BUSINESS TO PROFIT!..
it IS ABOUT COLLABORATE, COLLECTIVELY Follow other IWIW TAU AND CORPORATE BUSINESS WILL SURE TO FLOW!..
Cut and paste from newspaper articles. Waste of time
For what it’s worth, NGATI Kahungunu is prepared to loose $15 million dollars of stakeholder asset money because they failed to manage and scale the business. Takitimu Seafoods has a great reputation, service and products and deserves to be supported while it’s recovering from impacts beyond its control. This is negligence at the board level, playing hard and fast with Iwi investment and are now prepared to turn their backs to look at perceived greener pastures. Don’t negate responsibility to all members under the guise of acting responsibly. Roll your sleeves up and do the mahi, it’s not just 33 staff that are affected, the flow-on negatively touches multiple businesses. If the board does not have the skill set to navigate these waters, bring in consultants who do.