Downlow Burgers Kelston goes into liquidation three months after opening, third store in chain to go under in nine months
Takeaway franchise Downlow Burgers has had multiple locations recently enter liquidation.
Downlow Burgers’ Kelston location has gone into liquidation, just three months after the store officially opened.
The store is the third in the burger chain’s franchise to go into liquidation in the last nine months.
The franchise rights for the business are owned by Downlow Franchising, which itself is owned by Mad Group.
James and Nicholas Tucker are 65% shareholders of Mad Group, of which James Tucker is also the sole director.
Trading as Downlow Burgers Kelston, ZZRS Ltd was placed into liquidation on May 27, 2026, by its sole director Rui Wang.
Pritesh Patel of Patel and Co was appointed liquidator.
According to the first liquidator’s report, Wang advised the business was in operation for “no more than three months”.
Wang told Patel the business had failed from its initial purchase to achieve the required turnover to satisfy its fixed and variable business expenses as and when they fell due.
This included increased cost of goods, reduced foot traffic, increased competition and high costs when menu items were ordered via delivery platform Uber Eats.
The director advised that the combination of internal and external pressures made it impossible for the business to continue operating, and on professional advice, appointed a liquidator before the liabilities of the company further increased.
Since his appointment, Patel has frozen the company’s bank accounts, requested bank statements and sent notification to the Inland Revenue Department (IRD) and other creditors of the business.
Patel also confirmed he had signed a contract with a business broker to sell the business’ plant and equipment, explicitly not as a going concern, with the value of the assets currently commercially sensitive.
The liquidator has also made multiple visits to the Papatoetoe site in Auckland to meet prospective buyers.
Patel confirmed to the Herald that two current Downlow Burger franchisees had made contact with him to buy the sites, and said they had done so on “encouragement” of James Tucker.
In terms of liabilities, ZZRS has two registered security interests against it, although no amounts owing are listed.
This includes Goodman Fielder New Zealand and Coca-Cola Amatil (NZ), which both have a security interest registered over the company’s goods and all present and after-acquired personal property.
As for preferential creditors, Patel has identified one ex-employee of the company who was paid their full entitlement of holiday pay and wages outstanding of $715.60.
A further $2800 was owed to the IRD for outstanding GST.
In terms of unsecured creditors, the IRD is owed a further $520 for a small business loan and penalties, with another $5200 owed to “other” creditors.
Listed creditors of the company include the Accident Compensation Corporation, One New Zealand, Nova Energy, Walter Hood and Duet Cleaning, Honar Refrigeration, Service Foods and the location’s landlord, Ronald Kumar.
The total owed to all classes of creditors currently sits at $18,790.
Patel said it was too early to estimate the completion of the liquidation as matters identified in his first report would need to be attended to.
He also indicated his intention to conduct an investigation into the books, records and affairs of the company.
Downlow’s Kelston location is not the only franchise site Patel is overseeing, with Downlow Ponsonby and Downlow Kohimarama also in liquidation.
DL Ponsonby, trading as Downlow Ponsonby, went into liquidation in October last year at the request of its shareholders Puneet Gupta and Shashwat Mehta.
It was incorporated in April 2024. The company owed $113,000 to creditors including $30,000 to the IRD as of November 5.
Meelissa.MS, trading as Downlow Burgers Kohimarama, went into liquidation in January 2026 at the request of its sole shareholder and director Sarang Metha.
The company was also incorporated in April 2024, and owes $112,155 to creditors excluding assets, including $29,355 to the IRD as of January 27.
The Herald has requested comment from James Tucker.
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
- Stay ahead with the latest market moves, corporate updates, and economic insights by subscribing to our Business newsletter – your essential weekly round-up of all the business news you need.