Today’s liquidation has come as a big surprise to those in the sector, but one leader said the staff might be re-employed by another business.
“KBL Joinery specialises in producing a wide range of custom-made cabinetry for large-scale commercial and residential projects. Our highly skilled and experienced staff are committed to delivering the highest level of craftsmanship and quality. KBL has a large manufacturing plant that allows for large-scale project production,” the business says on its website.
The business supplied products to Summerset Group’s Ellerslie retirement village, for the Munro apartments, and many other major sites.
Companies Office records show Paul Vlasic of Rogers Reidy is the liquidator, appointed via a special resolution of sole director shareholder Brian John Gomes of Red Beach, who is also listed on the company’s website as its general manager.
Vlasic said today he had only been appointed this morning but the company had 28 employees and it was too early to say what would happen.
The business trades from 220 Bush Rd, Rosedale.
Damien Grant of insolvency business Waterstone said this month the liquidation trend so far this year “continues to climb similarly to the previous two years”.
He found building and construction dominated liquidations by industry in 2023, accounting for 29 per cent of all liquidations, followed by food and hospitality at 14 per cent, retail at 11 per cent and property investment at 5 per cent.
“Building and construction liquidation numbers lead the pack over other industries, making up nearly a third of the total liquidations for January and February 2023. This is likely a result of the cooling property market and we may see this ratio continue to grow in the upcoming months,” he said in a newsletter this month.
KBL folding is just the latest in the sector.
Last week, the Herald reported how M W Residential, trading as Stroud Homes Pukekohe, called in Whangārei’s Garry Whimp of Blacklock Rose to wind up the business.
James Stroud of Stroud Homes said contracts were struck to build nine homes: work was to start on three, some were finished except for final compliance and driveways, and three were under construction and needed finishing.
“This is a very disappointing situation. Our customers are our number one priority and our head office and another franchise nearby are working with customers to ensure their homes are built. We have five other franchises across New Zealand in excellent financial health that are continuing to grow.”
Before that, David Magill Builders 2017 folded, owing secured and unsecured creditors $1,006,500, of which $800,000 would be owed to unsecured creditors.
The company built houses and did renovations in the Christchurch area, and was incorporated in 2016. But after financial difficulties, sole director Craig Eion Freeman realised the best course of action was to go into liquidation.
New Zealand had 283 building company liquidations in 11 months of 2022, Commerce and Consumer Affairs Minister David Clark said.
Clark said the 283 liquidations were from January 1 till November 24.
Liquidations are not just because of financial failures but also when businesses’ assets have been sold, when a company’s work is complete, and for other reasons.
Megan Woods, Building and Construction Minister, said the housing development and construction sector had always been prone to boom-bust cycles.
“But without a long-term series of data, it’s too early to draw any conclusions, especially as construction liquidations are quite common. In fact, according to the recent Stats NZ business demographic survey we have seen significantly more new construction businesses starting up, with a fairly average volume of business closures,” Woods said.
