Homes in nine Auckland suburbs are caught up in the business failure. Photo / 123RF
Homes in nine Auckland suburbs are caught up in the business failure. Photo / 123RF
A building business that declared insolvency owes creditors $2.5 million and has abandoned nine Auckland housing sites including one owned by a former television presenter.
It’s the latest in a string of builder liquidations blamed partly on rising costs: yesterday, liquidators were appointed to KBL Joinery, trading for 49 yearsand with 28 staff; on March 9 it was reported that M W Residential, trading as Stroud Homes Pukekohe, went under; and in January JHIM Homes was refused funding so it called in liquidators.
Steve Khov, a director of North Harbour-based insolvency practitioners Khov Jones, said he did not know what people with partly-finished homes in the latest liquidation would do.
Bayside Designer Homes has ceased trading and is under Khov’s control. Precisely who will finish the work on the sites remains unknown.
Caught up in the insolvency are ex-television presenter Ingrid Hipkiss and partner Jack Tarrant. They are listed as creditors along with eight other parties who are all named in the initial report on the failed business for having homes under construction.
Hipkiss is joining RNZ National’s flagship breakfast news show Morning Report next month, having been at Newshub previously.
She expressed disappointment about the situation today and said the house in Three Kings was liveable but unfinished.
Ingrid Hipkiss was named as one of the clients in the first report on the failed business. Photo / Chris Gorman
Khov said the sites with new homes under construction are in Milford, Beach Haven, Hobsonville, Castor Bay, Mt Roskill, Massey, Rothesay Bay, Sunnyvale and Papakura.
His firm would do all possible to assist those building with the business but ultimately it was up to the clients to decide what to do next, he said.
“There are nine projects at various stages. We are still working through the contracts but there are no arrangements made at this stage by the company to complete the projects.”
Khov and colleague Kieran Jones issued a long list of creditors which includes Inland Revenue, possibly employees, Fletcher Distribution, and Tile Warehouse.
The company was only incorporated in 2017 and had its registered offices in Silverdale.
One Bayside creditor named in the report as a client said he had engaged the company to build a $2.5m house on a Rothesay Bay site he had lived on for 29 years.
“All I wanted to do was build a home and income residence for retirement. In 12 months, Bayside achieved very little. It’s just a hole in the ground. The original home was demolished and excavations were made and that’s it,” he said.
He did not express concern, however, about finding another builder.
He said he had checked out Bayside thoroughly before signing the contract and had no concerns in advance.
Companies Office records show Jonathan Earle Chiswell, Msonti, Bayside Projects and Dylan Townshend own the business but Chiswell of Mangawhai is the sole director. He is known as Jono Chiswell.
“The liquidators have been advised that the reason for the failure of the company which led to the appointment of the liquidators is due to cost overruns that have expended the cash flow of the company,” the first report said.
Secured creditors with general security agreements are owed an estimated $274,000 and those with a purchase money security interest are owed a further $77,000.
Asked for valuations on each of the housing contracts, Khov said they ranged.
“The contract values are of various amounts. Some projects are just a single build whereas other projects are multi-unit projects. Ultimately it will be up to the homeowners to complete their projects which may involve them engaging different contractors to continue the work.
“It is not strictly within our scope to assist with this but we always try and assist the homeowners if we can to ensure a smooth transition,” Khov said.
Unsecured trade creditors are owed an estimated $1.9m.
But on top of that, Inland Revenue is listed as being owed $125,000 and a separate $27,000. How much employees are owed in wages and holiday pay is yet to be confirmed.
