A Queenstown building company - formerly representing a national building franchise - has been placed under administration of Auckland-based BWA Insolvency Ltd.
Hartland Construction Ltd once held the GJ Gardner Queenstown franchise (until termination in January), which had been purchased from Otago rugby identity Laurie Mains about three years ago, and becomes the seventh franchise operating company in the province to strike financial difficulties.
Since 2005, five Otago building franchise operations have been placed in liquidation, including Highmark Homes, Smith and Sons in September last year ($348,000) and, earlier, the southern operators of Signature Homes (twice in five years, respectively $1 million and $1.3 million), Landmark Homes ($836,000) and Jennian Homes ($581,000).
The last and sixth casualty was in late October when P and A Design Ltd, which traded as Highmark Homes, was placed in liquidation by its sole director, with liquidators Insolvency Management Ltd estimating in its first report at the time there could be $713,600 of debts to secured, preferential and unsecured creditors.
A GJ Gardner spokeswoman, contacted in Auckland yesterday, said the franchise with Hartland was terminated in January, coming into effect in February, and the GJ Gardner parent had since then had "no affiliation" with Hartland's sole director, Marcus Steenland, of Queenstown.
The spokeswoman was unable to comment on whether any GJ Gardner clients around Queenstown were affected by the termination of Hartland's franchise, which had not been taken over by another operator.
A creditors meeting is being arranged in Queenstown next Thursday, by BWA Insolvency Ltd. BWA administrator Bryan Williams was unable to be contacted yesterday.
Under administration a company can be kept functioning while its financial position is assessed and creditor requirements are gauged, in the hope it can remain a going concern, but administration is just one step from receivership or liquidation.
Next Thursday's meeting in Queenstown is expected to receive an update from Mr Steenland on Hartland, and on other issues including whether to appoint a creditors committee and its potential membership.
Mr Mains, who has the GJ Gardner franchise in Dunedin and is opening a franchise in Invercargill in early June, was contacted yesterday but was unable to comment, noting he had not been involved in the Queenstown franchise for three years.
