Hort research company liquidation

The facility operated as a research and development organisation specialising in addressing scientific challenges in New Zealand's horticulture industry, providing artificial intelligence technology solutions.

However, chair Mark Gilbert says the company's sole shareholder PlantTech Research Institute Incorporated had decided to put it into liquidation, which he described as a "perfect storm". Gilbert says the company's pipeline of revenue dried up, with its clients, mostly in the horticulture sector, facing "very tough" seasonal and broader economic conditions.

"The kiwifruit and apple sectors in particular are facing their worst season in 10 years, and this is seriously impacting on their ability to invest in innovation currently," he says.

Meanwhile, PlantTech's five-year establishment funding from the Ministry of Business, Innovation and Employment (MBIE) is coming to an end. The company has claimed a total of $129,000 from four separate Callaghan Innovation grants since 2019.

Gilbert says, combined with the downturn in commercial revenue, the business was unable to survive without further government support and it had been told none was available.

"The board had therefore decided it had no option other than to make the decision to appoint liquidators while the company remained solvent."

Gilbert claims that by making the decision now, the business should be able to pay full entitlements due to staff and creditors.

"The board's view is that continuing the business from here would risk trading the company into insolvency."

Despite the company being wound up, Gilbert believes it did some fantastic work, which could create "very significant economic benefits" to New Zealand.

"We hope that much of this work can be continued in future by others, however, it is no longer viable to do so under PlantTech as it currently stands."

Steven Khov and Kieran Jones, of Khov Jones, had been appointed liquidators.