Signature Homes Hawke's Bay creditors are unlikely to receive the full amounts owing them, liquidator Lloyd Hayward said.
A banner on the company's Clive offices read "Gavin Hunt pay your contractors", but creditors were likely to be disappointed.
The liquidator's first report, released on the companies website yesterday, showed the company owedmore than $1.69 million to creditors and had assets of up to $200,000. "It is too early to say what portion they will get paid, but they are unlikely to be paid in full," Mr Hayward said.
A guarantor company had been found to finish partly constructed homes, but those companies were not obliged to pay for work already completed.
Company owner Gavin Hunt earlier told Hawke's Bay Today that fraud, which had recently come to light, had sucked "tens of thousands of dollars of funds" at a time when business was slow. Mr Hunt also owned Signature Homes Ltd and took over the local franchise when it ran into difficulty five years ago.
The liquidator's report noted building consents in the Hawke's Bay had declined by 30 per cent in the last year and "combined with significant fraud/theft by a previous employee has left the shareholder with no option but to place the business into liquidation".
The total amount lost to fraud or theft had not been established, the report said. Every effort was made to salvage the business, but it has not been possible to trade the business in its current state.
Mr Hayward said no decision had been made about laying charges as they were still hoping to recover some of the money. The other Hawke's Bay Signature Homes franchisee, Frimley Homes, is not related to SHHB and is operating successfully.
