Adult entertainment and real estate specialists the Chow brothers and another investor have bought the national franchise rights for one of New Zealand's largest home builders, Stonewood Homes.
An announcement has just been published outlining details of the deal.
"Property magnates the Chow Brothers and corporate finance specialist Clint Webber have bought the troubled Stonewood Homes business assets - third largest house building company in NZ - both the national franchise rights and the Christchurch franchisee - from receivers KordaMentha for an undisclosed sum," a statement said.
"The Chow brothers have a proven business track record, having built a $200 million portfolio of commercial buildings in Auckland, Wellington and Rotorua in just 18 years with 200 employees working for the group between Auckland Wellington," it said.
John Chow was in Christchurch for the announcement.
"Stonewood complements our office, retail, accommodation, and car park property portfolio," Chow said.
The Chows and Webber have extensive experience financing and managing complex restructures and with the Chow Group's solid cash flow, it makes this opportunity a logical fit, the statement said.
"The brothers, and Mr Webber are committed to turning Stonewood around and regaining customer and supplier trust."
Chow said the purchase signalled their clear intention to repair recent damage to the brand and to re-establish the Stonewood brand nationally on a very firm footing.
"This morning, the Chow brothers and Mr Webber met with all 44 remaining employees and offered them new contracts on similar terms," the statement said.
"While we still have quite a process to work through with the receivers, our next step will be to engage urgently with customers with uncompleted homes. It's vital we provide certainty for customers who have been affected. We have a management team of eleven here in Christchurch to seal the deal but we ask for tolerance from affected parties" reiterated Webber in the statement.
KordaMentha's Grant Graham and Neale Jackson were appointed receivers of Stonewood Homes New Zealand, Stonewood Homes and Sterling Homes in February. The receivers said 110 houses were unfinished, unsecured creditors were owed about $15 million and the company employed 85 staff.