Beloved Café Forced into Liquidation

One of Palmerston North's hospitality institutions has gone bankrupt, owing a significant sum to the Inland Revenue Department.

Cafe Cuba in the central city announced on Tuesday that it was closing permanently, which surprised many as word traveled throughout Palmerston North.

The cafe at the junction of George and Cuba streets was one of the city's most popular, and it was often filled.  Silk cake was a popular menu item.

Even though the cafe was closed on Tuesday, people continued to visit there.  Food might be found in the cabinets.

Steven Khov, liquidator of Khov Jones, stated to the Manawatū Standard that the business was unprofitable. 

Because he had only been appointed on Tuesday, he stated that it was too early to determine how much money was owed and that more would be known after the first liquidator's report was released next week.

However, Khov claimed that a significant debt was owed to the IRD.

Khov Jones would try to sell the company if someone wanted to buy it, but if that didn't work out, he would sell the assets.

"It reached a point where the owners did not want to continue the business.  I understand they had been working with the IRD.

"It got to the point where they wanted to make a prudent decision going forward."

He didn't know when things went wrong with the business or what the owners were aware of. 

"Just the overheads were too high," Khov remarked.

The IRD received a significant portion of what creditors owed.

Khov stated that there were a few additional creditors and that some employees would most likely be owed money.

Darlene Woodhead, the cafe's owner, could not be reached for comment, although the closure was published on their social media page.

"We're sorry to break the news to you.  We are appreciative of all of the years of hard work, laughter, endless memories, and lovely clients.

"Every coffee shared, every friendly chat had, and the amazing support from the community over the years."

"Though this chapter has come to an end, the memories and friendships will always stay with us, from our family to yours. Thank you for everything."

Any outstanding vouchers would be invalid, according to the post.

The closure announcement sparked a big response on social media, with many people expressing their disappointment at the loss of the cherished cafe that had been operational for years.

Jim and Doreen Farley, from Palmerston North, supplied lemons from their lemon tree to the cafe regularly.

On Tuesday, they arrived with a bag of lemons to discover that the firm had closed.