Christchurch modular housing company Shape Construction has gone under, owing more than $1 million to creditors and leaving homes unfinished.
The company went into liquidation on May 2 with Brenton Hunt of Insolvency Matters appointed as the liquidator by the company director.
Shape Construction, which began operating in 2012, ceased trading in April.
In the company’s Instagram page it was described as a progressive, creative and innovative builder of modular and container homes in New Zealand. The homes were prefabricated in a yard with posts showing them being delivered to often rural and remote sites.
The company’s website and Facebook page appeared to have been removed.
Mr Hunt’s initial report said issues with projects over the past few years had a large impact on working capital.
According to director Toby Van T Veen, Covid-19 had a large effect on the business with price escalations making some projects uneconomic quite quickly.
A past customer had began legal action against the company for costs in relation to an uncompleted building project.
The company’s bank account was in overdraft at liquidation.
The report said the preferential creditors of Inland Revenue was estimated to be owed $500,000 and $30,000 was owed in staff wages and holiday pay, while unsecured creditors were out of pocket $500,000.
Among more than 30 unsecured creditors were ACC, Auckland Council, Contact Energy, Central Otago District Council, Inland Revenue, Spark NZ and building suppliers, service and other firms.
Total funds in the report for distribution were estimated at $25,000.
The liquidator estimated at this stage that there would be no funds available to unsecured creditors, however, this would depend on the progress of the liquidation.
The liquidation was expected to be completed within a year.
