Two NZ Ski Resorts Placed in Voluntary Administration After Poor Winter
12th October 2022
Last modified on October 17th, 2022
The Tūroa and Whakapapa ski areas are on the North Island . External experts are to be appointed to see if they can survive. Poor snow, which some say is caused by climate change, are to blame along with the impact of Covid-19 restrictions since 2020.
The resorts are owned by owned by Ruapehu Alpine Lifts.
It follows a poor winter for snow where Turoa had to close early.
Whakapapa is set to close on October 24th
It follows two years of Covid-19 restrictions that saw little international travel.
The company currently employs 195 people.
135 were laid off as the Turoa ski area closed.
Snow has been sparse this year and New Zealand experienced its warmest winter on record for the third year in a row.
Climate change is blamed by some.
“The Voluntary Administrators will now continue to trade the business while we look to determine the most appropriate way forward to maximize recoveries for creditors,” said Voluntary Administrator John Fisk, of PwC New Zealand.
“The Company has had a very difficult last three years, with the impact of Covid-19 restrictions, paired with poor weather this season, meaning that the business has been placed under significant cash flow pressure.
“Our job as voluntary administrators is to consider a plan that can get a better recovery or better outcome than the company just going into liquidation,” he added.
See here for further details: NZ Herald
Ruapehu Alpine Lifts is a nonprofit and is exempt from paying company tax.
It needs to re-invest any profits back into the company, but in recent years there have been no profits.
If the resorts are forced to close permanently, it would leave the North Island without any major ski areas.