Franchise Builder Rues Client Debt

Otago Daily Times:

For the second time in four years, a franchisee of Signature Homes in Dunedin has been placed in voluntary liquidation.

Dunedin-based Murwil Construction was placed in liquidation by managing director Murray Wilson on Friday.

He yesterday said he took the action because of an outstanding $160,000 debt owed by a client, and warned his liquidation “could easily see” other companies in the industry placed in receivership or liquidation.

“This is the impact of having a client breach a scheduled payment contract.

“It was a significant hit on cash flow,” Mr Wilson said.

“I’m particularly gutted to have what appears to be a client encouraging us to build when they have known they couldn’t make the payments.” Full story.

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