Grant Maxwell Petrie, the other half of failed property investment company Merlot’s directorship, has been adjudicated bankrupt in the High Court at Auckland.

Two months ago, his co-director Stuart Herron was bankrupted.

Merlot Investments and Merlot Homes sold and managed properties in a similar manner to Blue Chip.

And, like Blue Chip, it failed to pay people their guaranteed rental returns.

Merlot Homes has been struck off the Companies Office register following its liquidation, and Merlot Investments is in liquidation and receivership.

The family home of bankrupt Merlot Homes director Stuart Herron, which recently sold at mortgagee auction, was completely trashed before the new owners could move in.

The Devonport property was purchased by Jay and Moira Taylor-Innes, who have three small children.

In the four weeks between the auction hammer falling and their moving in date, the house was torn to shreds.

Mr Taylor-Innes said the damage included:

>> 10 architraves (the wood around doors) ripped off the walls

Investors in failed investment scheme Merlot will be taking no solace in the fact that director Stuart Herron is bankrupt as it curtails another avenue for retrieving their funds.

Mr Herron did not bother to attend a hearing over the application to have him ajudged bankrupt at the High Court in Auckland, which he had previously indicated he would defend.