Henderson vows to open more bars

Six of David Henderson's bars might be run by receivers, but the Christchurch property developer's faith in the hospitality industry is firm.

He opened a bar called Graffiti White in Lichfield St in central Christchurch a few weeks ago despite his former SOL Square bars – Yellow Cross, La Petite-Croix, Vinum, Fat Eddie's, Cleaners Only and The Fish & Chip Shop – being on the market and run by receivers.

Henderson said more openings were on the way.

"We are opening another four bars and restaurants in His Lordships Lane over the next few months," Henderson said.

"They are all well-funded and well-supported and will be a big addition to the area here. I appreciate your interest. Come down and check them out sometime."

Two companies owning the former Henderson bars currently run by receivers owe about $7 million to secured and unsecured creditors, Henderson's figures show.

Associate Judge Rob Osborne said in the High Court in Christchurch this week that Henderson-directed companies had acted "inexcusably" in breaching court timetables.

In a reserved judgment on an application by Inland Revenue to wind up Yellow Cross Brewing Company (in receivership) and Char Char, which runs the Ishimoto bar and restaurant, he said the companies had not applied promptly for a variation of timetable.

"Rather, they left it to the [Inland Revenue] commissioner to raise the matter in advance of the call on November 2," he said.

"To that extent, I am satisfied that there are inexcusable aspects of the defendants' conduct on these applications which require to be dealt with in costs."

However, he was not prepared to order the liquidation of the companies before a hearing on November 30 at which the commissioner will oppose proposals to stagger the debts of the companies and those of Edward J Schwarz Entertainment (in receivership) and Atlas Food and Beverage.

The associate judge gave Inland Revenue leave to bring the liquidation applications forward if the defendants breached new timetables.

Henderson said the bigger question relating to the liquidations was "why are the IRD trying to liquidate a company where they are guaranteed to be paid anyway?"

"Why are they pouring so much resource and effort into that, including flying a QC down from Wellington each time the matter is called through the courts?" he said

"Why is it so wrong, in the eyes of The Press, for us to be working to ensure all the creditors are paid?"

Bayley's hospitality broker Peter Harris said anyone opening a bar in central Christchurch had to be "pretty street smart".

Harris, who has sold bars and hotels in the South Island for 14 years, said the changed drinking culture and the economic climate had led to a "stale market".

He said younger drinkers often arrived in town between 11pm and midnight after drinking at home.

"By the time they get into town they've had enough and they don't spend the money," he said.

Most bars were available as leasehold only, he said.

"And the banks won't lend on leasehold because there's no bricks and mortar involved and therefore nothing to secure their money against."