Meccano, a New Zealand retailer is currently in deep financial crisis as it owns its creditors debts of $5.8 million .

The company is facing several difficulties, including costly leases, with only three months of profitable trading after De Vere Investments purchased and took over the business in February 2016.

The retailer will pay Westpac bank a chunk of the $588,000 it owes but $89,000 owed to workers and $90,000 Inland Revenue will likely not be paid.

The retailer also owes unsecured creditors $5.1m, $2.5m of that in trade creditor claims, $104,000 in employee entitlements and related-party payables of $2.6m. Unsecured creditors would only receive money if there are recoveries that we can make in the liquidation.

Jackson and Grant Graham were appointed liquidators to the retailers. Meccano ceased trading in February when it was placed into voluntary administration.

Meccano had 12 retail stores throughout New Zealand and an online store