Jennian Homes Manawatu $1m in red
Manawatu's Jennian Homes franchise has collapsed, leaving a trail of debt of more than $1 million.
The building company operated in the province for a decade under the management of Anthony Scott, of Feilding.
The company wound itself up late last month and a progress report from liquidator Rod McKenzie shows it has an estimated deficit of $1.06m.
Its assets are valued at a mere $116,000 – with $65,000 of that for "work in progress", and $35,000 for vehicles.
Arrangements were being made to sell the assets, the report said.
If the assets are sold for book value, it could almost cover the $62,427 owed in wages and holiday pay and $55,243 to Inland Revenue for unpaid GST.
But it leaves unsecured creditors with no chance of seeing any return – as was the case when Manawatu's Signature Homes franchise, Karacrombie Enterprises, collapsed in November 2010 owing close to $1.3m.
The report acknowledged that any sort of payment to those creditors would be slim, and said no creditors' meeting needed to be held.
Jennian's trade creditors are owed $781,924, with building materials supplier Carters owed $376,123.
Even the Manawatu franchise's parent bodies are owed about $57,000.
The National Bank is out of pocket by $125,116, while shareholder advances – or loans – of $152,340 appear on the balance sheet.
Companies Office records show Mr Scott and Stephanie Scott own the majority of shares.
Mr Scott did not return calls over the weekend.
According to the Jennian website he had been in the construction industry for 25 years and had owned the Jennian Manawatu business for 10 years.
"I've been successfully building between 20 and 30 homes per year in the Manawatu and Horowhenua regions, utilising my extensive knowledge and experience to build dream homes that people are proud to own," he said on the website.
Last year, when building consent numbers in Manawatu slumped, Jennian's sales manager Lynette Hickmott told the Manawatu Standard business was quiet, but the company had fielded many inquiries.
"I really think it will pick up. People are thinking about building," Ms Hickmott said.
- © Fairfax NZ News