Villa Maria could trade way out

Press, 15 February 1986, Page 23

Villa Maria could trade way out

PA Auckland Receivers running an Auckland winemaker, Villa Maria, and associated companies, say sales are more than 30 per cent ahead of last year. Although they will not give exact figures, the receivers are working on a report which is believed to show the companies can comfortably trade their way out of financial trouble.

Mr Peter Howell, a receiver from the Auckland accountants Coopers and Lybrand, is to lodge a statement of affairs with

the Companies’ Office next week. The statement shows Villa Maria’s financial condition when it went into receivership and how much creditors could expect by selling all company assets. Mr Howell is also working on a statement to creditors outlining Villa Maria’s present position.

“While we cannot pay our bills tomorrow,- the company is trading so well that I am confident we can carry on a successful business,” he said.

Market research showed increased public interest in the winemaker’s lines. One researcher said that Villa Maria could have spent million of dollars on advertising and not achieved the present level of demand. Villa Maria and a sister company Vidal wine producers, Ltd, went into receivership on November 18. The managing director, Mr George Fistonich, said at the time that aggressive discounting had cut profits to an unacceptable level.