Cranston Homes liquidation winds up, tradies and others still owed $3.6m

Auckland-based Cranston Homes won multiple House of the Year awards but hit financial difficulty in 2016 after a string of leaky build claims. Photo / file

Tradespeople and other creditors claiming $3.6 million from a failed building firm will get nothing back, liquidators confirmed this week.

Auckland-based Cranston Homes won multiple House of the Year awards but hit financial difficulty in 2016 after a string of leaky build claims.

The firm, run by director Blair Cranston, was wound up last year and liquidator Boris van Delden released his final report to the Companies Office this week.

Although Cranston Homes' records showed the firm was owed $283,121, the liquidators were unable to recover any money from those they chased.

"All have responded that the amount shown is disputed for various reasons, including the quality of the work, the failure to complete the contract on time and payment by the client direct to sub-contractors or suppliers ... these amounts have been written off," van Delden said.

The liquidators got $1327 from the sale of machinery and made a $21,831 payment to IRD.

Secured creditors were still owed $190,000 at the end of the liquidation, the report said.

Unsecured creditors - many of whom were tradespeople - were the biggest losers and had filed claims for $3.6m from the liquidators.

The cupboard, however, was bare.

"There are no funds available for distribution to unsecured creditors," Van Delden said.

Van Delden said the liquidators have probed actions by Cranston and the sale of company assets to related parties.

"No other matters were identified that could be pursued for the benefit of directors." van Delden said.

Cranston Homes director Blair Cranston. Photo / file

Blair Cranston was a Master Builders' life member and its president from 2010 to 2012. He was expelled from the organisation in December 2016 for breaches of its code of conduct.

Cranston, now working as a real estate agent, told the Herald that out of the $3.6m, interests associated with him were owed between $1.2m and $1.6m.

"I obviously feel regret about the failure of my company. It has cost me everything. I apologise to creditors and customers who have suffered loss. Many have been supportive and understanding, something for which I am grateful," he said.

Cranston was declared bankrupt in March this year. He said he'd reached repayment terms with many of his creditors but one - a debt buying company - refused to agree to them.