The receiver for Auckland furniture maker Criterion says staff and other creditors are likely to get nothing from the sale of the company's assets.
Criterion went into receivership in early February, reportedly owing $11 million.
In its first report, receiver KordaMentha says a shortfall in funds means the first ranking secured creditor HSBC, which is owed $8.6 million, is unlikely to be repaid in full.
It says staff, who are owed $120,000 and Inland Revenue, which is owed $225,000, along with other creditors, are likely to get nothing.
Parties with security interests registered on the Personal Property Securities Register are Beverly Smaill of Auckland, Buro Officeware, and building and flooring company Hydrawood, also of Auckland.
KordaMentha had marketed the company for sale as a going concern in Australasia and while a number of parties initially expressed interest no one made an offer.
It's now in the process of auctioning the Auckland factory and selling off the inventory.
Criterion group manufactured, imported and traded ranges of flat pack furniture for the office and entertainment market.
The 48-year-old company was a major exporter to Australia, America and Europe.
Its East Tamaki plant had the capacity to manufacture more than 500,000 pieces of furniture a year.