A discount retail company operating seven stores across Christchurch and Auckland has collapsed into liquidation, leaving millions of dollars in unpaid debts and dozens of employees owed money.

Corsa International Limited, which operated stores under the names Goodstuff, Enjoy, Top Dollar$ and 2Cheap, stopped trading on 13 October after declining sales left the business struggling to pay its bills.

A newly released report from liquidators Grant Thornton reveals the company had approximately $5.17 million in liabilities when it collapsed.

The report, released on Tuesday, shows 34 employees are owed $124,598 in outstanding wages and leave entitlements that qualify for priority payment.

A further $171,974 in employee entitlements is classified as unsecured debt, bringing the total recorded amount owed to staff to nearly $297,000.

Inland Revenue is owed approximately $824,476, while the company has more than $1.1 million in outstanding debts to trade suppliers.

Another $2 million is recorded as owing through the shareholder’s current account.

The company’s sole director and shareholder is Hyeseong Cho.

According to the liquidators, falling sales were the main reason the business failed.

Revenue was no longer enough to cover operating expenses, putting increasing pressure on the company’s finances and its ability to meet payments.

The company’s shareholder ultimately decided to place the business into voluntary liquidation.

Liquidators Adele Hicks and Stephanie Jeffreys said they expect there will be enough money recovered from the business to make some payments towards employees’ priority claims.

However, it is too early to determine how much affected workers will receive.

The outlook is less certain for unsecured creditors, including suppliers and others owed money by the company.

The liquidators said it remains unknown whether any funds will be available to repay those debts.

All seven stores have now closed, with liquidators moving to sell remaining stock and business assets to recover money for creditors.

An agreement has already been reached to sell stock and some equipment, while additional stock and two vehicles are expected to be sold at auction.

The liquidators will also investigate the company’s financial affairs and transactions involving its director and related parties to determine whether further money can be recovered.

Customers with outstanding orders, deposits or unused gift vouchers are being encouraged to contact Grant Thornton to register a claim.

Creditors have until 11 November to submit their claims.

The company had been operating since March 2019.

Anyone affected can contact the liquidators at [email protected].