Auckland’s Little and Friday Cafes Face Liquidation Over Tax Debt

The popular Auckland cafe chain, Little and Friday, has entered liquidation due to an outstanding tax debt, as revealed in documents from the Inland Revenue. According to a preliminary report by the Official Assignee, the company owes creditors approximately $1.4 million. The total value of the assets is still being assessed, creating uncertainty for stakeholders.

Owner Kim Evans closed the last of her three locations in May 2023, marking the end of a decade-long journey in the cafe industry. Once a thriving enterprise that employed over 70 staff members and generated annual revenues of around $5 million, Little and Friday struggled with declining trading conditions that ultimately led to its demise.

Closure of Iconic Locations

Evans had already shut down her Newmarket bakery in July 2022 after 14 years of operation. The closure of this location was a significant event, as it had been a staple in the community and a favorite spot for locals. Despite the challenges, Evans’ cafes were known for their quality offerings and vibrant atmosphere.

The decision to liquidate came after a series of financial struggles that culminated in an inability to meet tax obligations. The liquidation process will now determine the extent of the debt and the potential recovery for creditors.

As the liquidation unfolds, it serves as a stark reminder of the challenges faced by small businesses, particularly in a fluctuating economic landscape. The impact of this closure will be felt not only by the employees but also by the loyal customers who frequented these cafes.

The future of the brand remains uncertain, but the closure of Little and Friday highlights the importance of financial management and the potential consequences of outstanding tax debts. This situation underscores the critical need for businesses to navigate their financial responsibilities carefully to avoid similar outcomes.