The financial turmoil at Yarrows looks set to claim another victim: Noel Yarrow's legacy.
The philanthropist and his wife Melva donated millions of dollars to Taranaki students and organisations through the Noel and Melva Yarrow Charitable Trust. But the trust is under serious threat after its major source of income, Yarrows the Bakers, was placed in receivership earlier this week.
The Taranaki Daily News understands the trust is well down the pecking order for receivers, behind the IRD, employees and the Westpac bank, which is believed to be owed a significant amount.
Trustee Peter Tennent said the trust was inextricably linked to the bakery.
"The most significant asset of the trust is the investment in the bakery operation. It always has been – and my hope is it always will be – and that would be in the tune of eight figures.
"Having said that, the trust has other assets but most of its income comes from the bakery."
The charitable trust was formed in 2004 to celebrate Mr Yarrow's 80th birthday.
Since then it has given large contributions to the ITU World Cup triathlon, the Rhododendron Festival and the Taranaki Cycle Challenge. Dozens of students and the schools they represented also benefited.
Mr Tennent said the trustees were hopeful receivers could trade out of the difficult situation.
"The trustees, like anyone in Taranaki, are pretty upset about the situation. It's been no secret there's been potential problems for some time. The trustees have been working with a number of parties to avoid exactly what is happening now."
He said the trust would continue to support the region but at a significantly reduced level of funding. "It will continue to do exactly what it was set up by Noel and Melva to do, which is to make a positive difference in the Taranaki community."
Husband of Rosemary (nee Yarrow), Mr Tennent said he could not speak for the whole family but there were concerns for staff, suppliers and the community at large.
"The family have worked incredibly hard, they are community-minded people, to make a positive difference."
Also as part of the trust a scholarship scheme was set up for Taranaki secondary school leavers as well as for funding towards information and food technology facilities at all Taranaki schools.
Taranaki Secondary Schools Principals Association spokesman Mark Bowden said they were unsure how it would affect them in the future.
"The vision that Noel had for young people and Taranaki I guess is at risk. It's dreadfully sad.
"We are such a fortunate province to have had the Yarrows Trust."
- Taranaki Daily News
LAIRD HARPER
Last updated 05:00 03/06/2011
On Thursday the Taranaki Daily News went to Manaia to find out what the locals thought would happen to the bakery, community and town after Yarrows went into receivership on Tuesday.
http://www.stuff.co.nz/taranaki-daily-news/news/5094505/Bakery-woes-threaten-philanthropists-legacy
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