Barry Sheds advertised itself as selling high-quality products. Photo / Supplied
Barry Sheds advertised itself as selling high-quality products. Photo / Supplied
The owner of a bespoke kitset Auckland cabin and shed builder has called in a liquidator.
Creditors are owed more than $400,000 and one was asking why the company took her deposit only five days before declaring insolvency.
Paul Barry's Barry Sheds of Kerrs Rd in 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.
"Our Auckland-based install team make it easier than ever to have a shed or cabin delivered and assembled in your backyard," the business said.
The company was formed in 2015. It ceased trading on August 24, the same day that Kelera Nayacakalou of Liquidateit Solutions in Hamilton was appointed liquidator.
Barry was the shareholder and director and had been manufacturing and retailing custom sheds and cabins.
"The director 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 which the business is unable to trade out. The shareholder subsequently resolved to place the company into liquidation," Nayacakalou said.
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.
Barry Sheds sold this model for just over $14,000. Photo / supplied
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.
The 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.
Another person said her parents had paid in full for a cabin four weeks ago.
"We are so shocked and have no clue what to do," that person wrote on social media, saying any advice would be gratefully received.
"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 liquidation," she said.
A third customer sought to connect to others who had paid money to the company.
