Fireplace customers are feeling left out in the cold and out of pocket after Whangārei retailer and installer Flaming Fires went into liquidation.

One customer paid $7500 for a fireplace last year but it was never installed, and he has now given up hope of getting any money back.

Flaming Fires went into liquidation on May 6, with the 12 employees having their contracts terminated.

The liquidators’ initial report said difficult trading conditions over the last year, plus an increase in overheads, meant the company struggled to meet costs as they fell due. The director tried to sell part of the company to recapitalise but the sale fell through.

Liquidator Garry Whimp from Blacklock Rose said there are a lot of customers who paid in advance but have not received a fireplace.

“We’re still to investigate but we’re not happy about the fact that there’s quite a large number of people who haven’t received their fireplaces.

“Something that we will look at is solvency and whether the directors were trading in insolvency - that’s something we take very seriously.”

Whimp said the exact number of creditors is still unknown and he encouraged anyone owed money, or a fireplace, to get in touch.

He was concerned about customers, particularly elderly people, who have paid money and now have no way to keep warm over winter.

“We’ve had a number of pretty sad stories of Northlanders who have paid and won’t be able to afford another fire this winter - our team has a fair bit of sympathy for these people.”

Whangārei resident Bradley, who asked for his last name to be withheld, said he felt disappointed and angry when he found out Flaming Fires was in liquidation, owing him $7500.

“It feels like theft. They’ve just flicked the switch and gone into liquidation, but they’ve taken my money,” he said.

Flaming Fires' shop on Commerce St in central Whangārei is closed and up for lease, as the company is liquidated. Photo / Denise Piper

Bradley wanted a fireplace for his relocated home and approached Flaming Fires in October last year, having used them before.

He claimed he got a quote and was asked to immediately pay the full price for the fireplace, $7500, to secure the job, while the installation was to be paid after the work was done.

Bradley paid up and expected the fireplace to be installed before Christmas but thought Flaming Fires was prioritising newbuilds over his older home.

“They said ‘sorry, we’re busy but we’ll definitely have it in before the end of January’.”

Once January arrived, Bradley called Flaming Fires several times and was promised his fireplace would be installed.

He claimed the company became harder and harder to get hold of and sent out a generic email asking customers not to call due to high call volumes.

About a week later, Bradley found out Flaming Fires went into liquidation.

He has lodged a claim with the liquidators but, as an unsecured creditor, he is not confident he will get anything back.

The liquidators’ initial report to creditors, dated May 13, listed 66 known creditors but Whimp said there were a lot of customers who were not in the system as a creditor, despite paying for their fireplaces in advance.

For Bradley, he and his partner had budgeted for the fireplace and have no surplus funds to pay for another one.

“We had budgeted down to a tee with no extra in the bank. We now don’t know when we can get a fireplace put in - we know it won’t be this winter,” he said.

“It’s very disappointing that this has happened, and I feel very sorry for everyone else too.”

The liquidators set a date of June 21 as the last day for creditors to make their claims, but Whimp said that deadline was likely to be extended as people who haven’t been notified are still finding out about the liquidation.

“We’re not going to cut them off because they’re outside that time frame.”

Anyone who is owed money or a fireplace from Flaming Fires can fill out a creditor claim form on Blacklock Rose’s website and email it in, he said.

The Northern Advocate has made several attempts to contact Flaming Fires’ director without success.

Denise Piper is a news reporter for the Northern Advocate, focusing on health and business. She has more than 20 years in journalism and is passionate about covering stories that make a difference.