Hundreds go in Mainzeal layoffs

About 200 Mainzeal employees have been made redundant as receivers try to contain costs of the collapsed building company.

PwC's Colin McCloy and David Bridgman were appointed as receivers to Mainzeal Property and Construction Ltd and associated entities last Wednesday.

Mr McCloy told NBR ONLINE about 200 people on sites up and down the country, including head office staff, were told on Friday they had been made redundant.

That leaves about 200 people directly employed by the company.

Asked which sites receivers had closed down entirely, he says: "We're still working through that process; we're still reviewing every single site."

He would not say if chief executive Peter Gomm still has a job, saying: "I wouldn't want to make any comments on individuals."

Christchurch firm CeresNZ, the New Zealand unit of United States company Ceres Environmental Services, has emerged as a potential Mainzeal buyer

In a statement, Mr McCloy says: “We are currently in talks with some parties interested in buying the business and assets of Mainzeal, either as a whole or by segment.

"We understand the importance of a prompt and efficient management of this receivership and we remain committed to working as quickly as possible through this receivership."

BusinessDesk reports the company is understood to have failed because its shareholder, Richard Yan of Richina Group, didn't make a $1.8 million payment on an outstanding $20 million credit facility.

Bank of New Zealand withdrew credit facilities early last week, leading to the receivership and the resignation of three independent directors: former Prime Minister Jenny Shipley; former Brierley Investments chief executive Paul Collins; and a Tauranga businessman.

dwilliams@nbr.co.nz


Got a question about this story? Leave it in Comments & Questions below.


This article is tagged with the following keywords. Find out more about MyNBR Tags

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7163 -0.0010 -0.14%
AUD 0.9326 -0.0005 -0.05%
EUR 0.6793 0.0031 0.46%
GBP 0.5748 -0.0005 -0.09%
HKD 5.5595 -0.0071 -0.13%
JPY 81.3350 0.0300 0.04%

Commods

Commodity Price Change Time
Gold Index 1238.9 4.090 2017-02-21T00:
Oil Brent 56.8 0.940 2017-02-21T00:
Oil Nymex 54.3 0.900 2017-02-21T00:
Silver Index 18.0 -0.030 2017-02-21T00:

Indices

Symbol Open High Last %
NZX 50 7115.7 7115.7 7115.7 -0.42%
NASDAQ 5850.2 5867.9 5838.6 0.47%
DAX 11818.0 11987.6 11827.6 1.18%
DJI 20663.4 20757.6 20624.0 0.58%
FTSE 7299.9 7319.0 7299.9 -0.34%
HKSE 24174.1 24213.6 24146.1 -0.76%
NI225 19267.9 19395.3 19251.1 0.68%
ASX 5791.0 5793.9 5791.0 -0.08%