Recession A Factor In David Reid Homes Closures

New Zealand Herald:

A string of businesses in the franchised David Reid Homes have gone to the wall lately, a move its chief has blamed on the construction downturn.

David Reid Homes Wellington went into voluntary liquidation this month leaving at least 10 houses half-built and owing contractors thousands.

That followed problems with the Manawatu, Pukekohe and Marlborough franchisees.

Ben Allen, David Reid Homes general manager, said the downturn in new-house starts had an impact on the business.

The Franklin franchise shut just before Christmas and it was going through the liquidation process, he said. About $1.7 million is thought to be owed, an amount which Allen said included loans and claims by subcontractors.

David Reid claims to be New Zealand’s largest builder of houses in the $400,000-plus category and Allen said few people were left suffering. Read on.

Featured Opportunities

Related Stories