Double-glazer Green Innovations folds: 16 customers’ orders unfulfilled

Green Innovations showed this home on its site, explaining the advantages of double-glazing. Photo / Green Innovations

Sixteen customers who paid in advance for double-glazed doors and windows have become unsecured creditors of Palmerston North-based Green Innovations after its owner called in liquidators.

Pritesh Patel is now the liquidator of the national company owned by Michael Wright of Fielding, who initially had the business put in the hands of Keaton Pronk and Iain McLennan of McDonald Vague on November 17.

But on December 7, Patel took over after several customers sought a new liquidator. Wright had appointed the first one, they complained. McDonald Vague then vacated the position of liquidator.

Green Innovations sold uPVC products used for double-glazing in new and existing homes. It says: “uPVC is a type of strong and durable plastic that is used to make double-glazed window and door frames. It is popular throughout Europe, including in locations that get very cold weather as well as weather extremes.”

But debts were estimated in McDonald Vague’s first report at $916,000, including $785,000 owed to customers and other creditors and a further $131,000 owed to Inland Revenue.

Patel said most customers were in Wellington. “I’ve sent a four-page questionnaire to all victims to gather more information.”

He wants to know where deposits paid by those 20 customers went. Some customers have told him about emails from Wright continuing to confirm orders were on their way.

“I sympathise with these people, especially the pensioners. One saved for more than 10 years to have this double [glazing] done,” Patel said.

Wright told McDonald Vague how much went wrong for his business. The first report cited:

• The company struggled through Covid/post Covid;
• Took on a potential business partner as a contractor who caused major costs and losses;
• Extended lead times over a time where many supply, transport, fuel and install costs were increased;
• Experienced many non-payers/requested discounts from clients;
• Large unnecessary lease costs after downsizing/streamlining operation process;
• Many large job overruns, reworks and pricing errors caused losses;
• Large advertising costs to increase sales which proved to be unprofitable;
• The company was gaining traction to become profitable when leads/sales were reduced with an industry downturn.

The company was incorporated only in June, 2019. When pandemic lockdowns were in force in 2021, it got $18,000 for four employees, Work and Income’s subsidy scheme showed.

The first report on the business listed $40,000 in possible assets but employees were owed $5200.

All 16 customers were named in that report along with other creditors including Accident Compensation Corporation, Contact Energy, Z Petrol, Low Cost Bins, BWG, NK Windows, One NZ, Prospa, United Movers and Wurth.

One customer has complained to the police about losing money.

One customer said he had paid $13,000 and been told his windows were being completed “even though the manufacturer claim they were never started”. He paid the money in October last year after being given a contract by a salesman from Green Innovations.

The job was to cost in total more than $40,000 and although there were delays in the work, he fully expected it to be completed. That customer is now an unsecured creditor.

Patel said one customer had paid $55,000 in advance and didn’t have the products.

Anne Gibson has been the Herald’s property editor for 23 years, has won many awards, written books and covered property extensively here and overseas.