Firm's closure may hit clients

Mercy Renovators owners Paula Petrowski and Steve Petrowski have called in the liquidator for their Hastings business. Photo / File

A Hastings building company has gone into voluntary liquidation, with some customers concerned they may be left out of pocket.

Mercy Renovators which boasted more than 20,000 house renovations over more than 20 years, was last week put into liquidation.

The company is a one-stop-shop for home renovations, from new kitchens and bathrooms to building extensions and painting.

Hawke's Bay Today couldn't confirm how many employees' jobs might be affected by the liquidation, but an ad the company released last year said it employed builders, joiners plumbers, electricians, plasterers, painters and tilers at its Orchard Rd factory where it completed much of the joinery work for customers.

Grant Thornton New Zealand Ltd of Wellington was last week appointed liquidator after a special resolution of shareholders. Creditors have until November 21 to make claims.

Mercy owners Steve and Paula Petrowski could not be contacted yesterday.

Napier's Michael Kelly told Hawke's Bay Today his fiancee had paid a deposit for renovations and was now unlikely to see any of that money.

"This whole thing is totally disgusting and has shattered our dreams for any further renovations ... at least for a considerable time, and at a much reduced level," Mr Kelly said.

Two weeks ago Hawke's Bay Today quizzed Mr Petrowski on rumours the company was in liquidation. He said the company "was up to date". "The doors will be open tomorrow and will be for some time," he said.

Other concerned readers who didn't want to be named contacted the newspaper. One reported a kitchen was removed in anticipation of a new one, which they may not get.

David Ian Ruscoe and Richard Grant Simpson of Grant Thornton New Zealand Ltd have been appointed liquidators.

Mercy Renovators is a member of the Registered Master Builders Association of New Zealand which offers guarantees for deposits lost and unfinished work by members, but acting chief executive Brendon Ward said customers could opt out of guarantees, which came at a price.

"If people have made a deposit on a build and have a guarantee in place then the loss of deposit is covered and they will get that back, less any work that has been done," he said.

Work done could include council consent applications and design work.

Master Builders Hawke's Bay president Ian Welch said that while Auckland and Christchurch were seeing a lot of building activity, regions like Hawke's Bay were missing out. Many local firms had downsized and some tradespeople had moved to Christchurch.

The latest figures released by Statistics New Zealand show the value for new building consents issued in Hawke's Bay for September was $10 million, up $1 million on the same period last year but well down from September 2010's $16 million.