Cherri Global Enters Liquidation Following Financial Struggles

One of New Zealand’s largest cherry growers, Cherri Global, has reportedly entered liquidation after struggling to raise capital and repay debts. The liquidation was confirmed on March 8 through a special shareholder resolution. Creditors now have until April 8 to register their claims with the appointed liquidator, PwC New Zealand.

The company’s founder, Phil Alison, established Cherri Global in 2017 after selling his shares in Rockit Global, formerly Havelock North Fruit Company. By 2021, Cherri Global had developed 10 cherry orchards in Hawke’s Bay and Central Otago covering a total of 165 hectares. In the same year, the company raised NZ$15 million (US$8.58 million) with the intention of doubling its operations. The company’s export brands, Cherri and Delicious, mainly target the Chinese and Vietnamese markets.

For several months, Cherri Global and its subsidiaries Cherri Holdings and Cherri Machinery have faced increasingly severe financial difficulties. PwC’s initial report indicates that the company owes approximately NZ$42 million (US$24.01 million) to more than 30 unsecured creditors.

New Zealand’s cherry industry is highly competitive, with around 90% of production destined for export, primarily to China, Vietnam and other Asian markets. Although cherry cultivation has the potential for high returns, the initial investment is considerable. Setup costs in New Zealand range from NZ$150,000 to NZ$200,000 (US$86,000–114,000) per hectare, not including infrastructure investments such as packing plants and cold storage facilities.

Image: Pixabay

This article was based on a Chinese article. Read the original article.