Cafe Cuba

PHOTO: The closure of Cafe Cuba is just the latest in a string of high-profile hospitality sector collapses across New Zealand. FILE

📍 Palmerston North’s much-loved Cafe Cuba has officially closed after going into liquidation — leaving behind decades of memories, loyal customers, and a huge gap in the city’s hospitality scene.

📢 The Announcement

In a heartfelt Facebook post, owners Darlene and Paul Woodhead confirmed the closure:

“It saddens us to share this news with you, after years of hard work, laughter, countless memories and wonderful customers, we are so grateful for everything. Though this chapter has come to an end, the memories and friendships will always stay with us.”

👉 The post also confirmed that outstanding reservations and vouchers are no longer valid.

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⚖️ The Liquidation Process

  • Kieran Jones and Steven Khov of Khov Jones Ltd were appointed liquidators of Castro Limited (the company behind Cafe Cuba) on August 18, 2025.

  • Their first liquidator’s report is due on August 26, 2025.

📉 Hospitality Industry Struggles

The closure of Cafe Cuba is just the latest in a string of high-profile hospitality sector collapses across New Zealand.

According to Centrix:

  • The hospitality sector overtook property in June as the second-largest industry for liquidations.

  • 288 hospitality companies entered liquidation in the past year (up from 199 the previous year).

  • Rising operating costs, excessive rents, and shifting consumer spending patterns continue to devastate the sector.

Centrix managing director Keith McLaughlin says:

“This is a clear sign that the industry continues to struggle.”

🥀 Other Recent Casualties in NZ Hospitality

  • Kind Café (Auckland): Closed due to spiralling costs and rent pressures — famously known as a favourite of Dame Jacinda Ardern.

  • Butlers Chocolate Café (NZ franchise): Shut down five stores, owing more than $1m to creditors and staff.

  • Little and Friday (Auckland): Forced into liquidation by Inland Revenue, owing $1.4m including $639,389.19 to the IRD.

📌 What This Means For Palmerston North

Cafe Cuba wasn’t just a café — it was an institution, a go-to spot for coffee, brunch, and celebrations. Its closure highlights the harsh economic reality facing small hospitality businesses in New Zealand.

 

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