Hawke's Bay's A1 Homes franchise collapses, liquidators contacting customers left with unfinished houses

The A1 Homes show home on Maraekakaho Rd. Photo / Warren Buckland

A booming construction industry has not been enough to stop a Hawke's Bay building company from going under - leaving dozens of homes unbuilt.

About 100 subcontracting companies have also been left out of pocket.

Just a month after building company owner Rob Fargher told Hawke's Bay Today that he was "rushed off his feet", PwC confirmed that Fargher Construction Limited, which operates the A1 Homes franchise in Hawke's Bay, Gisborne and Taupo had been placed into liquidation.

John Fisk and Marcus McMillan, of PwC, were appointed liquidators on Friday.

Fisk said the size of the company's debts was unclear.

"The company's shareholders made the decision to put the company into liquidation due to ongoing cash flow pressure.

"While it is still early in the process, we will be reviewing the position of the company, and will look to determine the most appropriate way forward to maximise returns to creditors.

"We will look into the events that led to liquidation of the company to see if there are any avenues where there may be further recoveries available.

The liquidators are yet to determine the full extent of creditor claims but Fisk said 18 contracts for homes were at various stages of completion.

Deposits had been paid for 10 contracts but no work had started, and payment had been made for plans to be drawn up in another 10 contracts but no further work had been done.

Fisk said about 100 subcontractors and building materials suppliers would also be affected.

One subcontractor, who did not wish to be named, said something needed to be done to safeguard subcontractors.

"We're the ones that get caught all the time being not paid - and that's not just in Hawke's Bay, it's the whole country. I think there should be something that can safeguard us in the sub trades - we're always the ones left without."

He told Hawke's Bay Today he was owed $5000 but knew of others owed tens of thousands.

"Having said that, I've been ill so I haven't worked as much, so it means a lot to me."

Last year $211.6 million worth of new homes were approved in Napier, Hastings and Central Hawke's Bay.

Fargher declined to comment when contacted by Hawke's Bay Today. But the A1 Homes website has removed the Hawke's Bay, Taupo and Gisborne franchises from its website.