Otago Homes Limited, which is a franchise of Landmark Homes, was placed into voluntary administration on February 23.
Landmark Homes chief executive Gary Woodhouse said the franchisee had essentially "run out of money" after struggling with material and skills shortages in the face of "extreme" housing demand.
The creditors included building merchants, sub-contractors and tradespeople, Woodhouse said, but it was too early to know what the shortfall was.
Otago Homes had three people on staff, as well as one director, Andrew Lawrence.
Woodhouse said the company had eight builds under way in the Otago region and it was now working with affected customers.
"We are looking at the cost to complete these builds and we will evaluate them build by build and look to get in a good forward position, so we'll be able to present that position to our customers in due course."
When asked if there was a risk that some homes would not be finished Woodhouse said he wanted to see them all completed and was working hard to make sure that happened.
The rest of Landmark's 12 franchises were performing well and delivering high-quality homes to customers, he said.
The administration comes after a major construction industry report last year warned that smaller firms were at risk of failing, as they grappled with significant cost pressures from higher material costs and wages.
Woodhouse said building firms, regardless of their size, would be in a good position to handle the pressures if they were well-organised and worked closely with their suppliers to manage product delays.
According to its most recent annual return, Otago Homes Limited is owned by a collection of trusts.
A meeting of Otago Homes' creditors is scheduled for March 7 in Queenstown.
