A special shareholders’ resolution on Monday appointed Adam Botterill of Waterstone Insolvency as liquidator for Candoo Crew Ltd (now RLU Group Ltd) and Candoo Franchising Ltd (now Fieldcrest Property Services Ltd). Botterill told Stuff a formal liquidator’s report is expected in the coming days.
The firms were founded about two years ago by New Zealander Allias Grindrod and Australian James McGovern, who promoted the Candoo brand as having “$1 million+ in annual revenue” and more than 50 franchisees nationwide in its first year.
Since then, former staff and franchisees have secured a series of tribunal rulings against the companies. An Employment Relations Authority decision and two Disputes Tribunal orders initially forced payment of $77,000, which remained unpaid for months. Subsequent tribunal decisions for franchisees Priyank Sharma (NZ$19,000), Amit Dalwadi and Samir Patel (NZ$56,000) and others have pushed the total debt to over NZ$150,000, with all payment deadlines now passed.
Franchisee Priyank Sharma, who signed up in Tauranga in May 2022, was awarded a deed of release that required Candoo Crew Ltd to pay him five monthly instalments of NZ$3,800. None were made, and the tribunal ordered the company to pay the balance by 1 September 2023. Dalwadi and Patel claim the company sold their business without returning the fees they had paid, a claim the tribunal upheld.
In a statement, a company spokesperson said the owners are “cooperating fully with the liquidators” and are working with affected franchisees to “facilitate a smooth transition to the new master franchisor.” The new master franchisor has agreed to let existing franchisees continue under its operation, though no details on repayment have been provided.
McGovern, who describes himself as Candoo’s “head of growth,” has publicly refused to pay a former staff member ordered to receive compensation, posting a YouTube video in which he vowed not to pay “another cent.” He has also travelled extensively to Dubai, India and the United States during the disputes, and previously faced liquidation of an Australian café business in 2023.
The liquidation marks the latest escalation in a series of legal and financial challenges that have left dozens of franchisees and former employees unpaid, raising questions about the future of the Candoo brand in New Zealand.