One of the models Barry Sheds was selling before it became insolvent. Photo / Supplied
One of the models Barry Sheds was selling before it became insolvent. Photo / Supplied
The insolvency of Manukau-based Barry Sheds has resulted in one customer worrying she might be forced to live in her car or a garage.
Susan Maynard, who is retired, was commenting on the failure of the business that she was depending on for a new minor dwelling.
"So, now Ihave two options: live in my car, or in a garage," she said.
Paul Barry, the owner of the bespoke kitset Auckland cabin and shed builder, called in a liquidator on August 24. Creditors are owed more than $400,000 and another customer was asking why the company took her deposit only five days before declaring insolvency.
Barry Sheds of Kerrs Rd, Manukau, advertised itself as "high-quality and affordable" and sold buildings for around $14,000: "Our sheds and cabins are all made to order with high-quality New Zealand timber products. The size and designs are flexible to suit your requirements."
But now the company is in the hands of Hamilton liquidator Kelera Nayacakalou of Liquidateit Solutions who has decided not to call a creditors' meeting.
Maynard was surprised by the liquidation.
"It was a mere week before the sudden liquidation notice that I communicated with them to make a minor alteration to the cabin, nary a hint of problems to follow," she said.
She can't afford a home and a Barry Shed was her best option.
"My relationship disintegrated earlier this year and I had insufficient funds to buy a new home. Faced with being homeless at the age of 65 is a very daunting prospect. However, I have a couple of friends who said I could put a cabin on their section so I could have a home of sorts," she said.
So, after much research, she settled on Barry Sheds as a reliable business producing products of reasonable quality.
A 50 per cent deposit was paid on July 24. The cabin was due to be delivered on October 6.
"It was mere weeks away," Maynard said.
Barry Sheds is in liquidation. Photo / Supplied
A statement of affairs showed unsecured creditors claiming $423,585.
Inland Revenue's amount was yet to be confirmed but is on the books as being owed $110,348. Annual leave and holiday pay owed was $33,996.
The estimated shortfall from the downfall was yet to be quantified but fixed assets included a motor vehicle, trailer, plant and equipment.
Creditors appeared as ACC, BNZ, Inland Revenue, Bunnings, Independent Building Supplies, Max Birt Sawmills, Wiri Wholesale Timber Co, NZ Wood Products, Euro Rate Leasing, Toyota Finance, Barry himself, then a list of individuals whose addresses were not stated in the schedule of creditors.
Paul Barry stated that the business failed "due to lack of sales, excessive overheads, lack of sufficient working capital and Covid-19."
"The company has incurred substantial debt that the business is unable to trade out. The shareholder subsequently resolved to place the company into liquidation," Nayacakalou said.
Nayacakalou said a meeting had been held with Barry who was accompanied by his mother.
Access to financial statements had been obtained and a visit to the Barry Sheds site conducted.
Now, the liquidator will investigate matters further and try to recover what money is available.
It's too soon to say what, if any, distributions will be made.
A second Barry Sheds customer said she feared for others who may have paid much larger amounts than she has.
"We chose and trusted them above many other companies to deliver on their promises. We are devastated," she said.
A third disappointed customer said: "We were scheduled to begin building the sleepout on the 20th of September until today when we checked the website to see that the company was liquidated. We have the liquidation declaration and have the names of around 40 others who were also affected by this."
