David Reid Homes South Auckland franchise collapses
A building company has gone into liquidation owing nearly $1.6 million, as the downturn in the housing market continues to go downhill.
Pukekohe-based BSB Construction, a franchise of David Reid Homes, has been declared insolvent, one of many businesses that have become extinct in the last couple of months.
The company owes a total of $1.74 million, with only $174,000 in assets, leaving its creditors about $1.58 million out of pocket.
A liquidators report hints that BSB Construction was in trouble for some time before the building slump finally sounded the death knell.
“Unfortunately, it appears that the company built and sold homes with insufficient margins to cover its operating overheads,” says the report.
“While attempts to rectify this situation were made, conditions in the home market have made it impossible for the company to trade.”
Creditors have until December 19 to lodge a claim for money owed.