Fallout From Failed Firm

Stuff.co.nz:

Disgruntled clients and subcontractors left out of pocket by a failed Wellington building company are angry.
David Reid Homes Wellington went into voluntary liquidation on Monday, leaving at least 10 houses half-built and owing contractors thousands.

It is the fourth David Reid business to go under in recent months, after Manawatu, Pukekohe and Marlborough franchisees were declared insolvent.

Solo mother Shona Shaw paid David Reid Homes Wellington a $42,200 deposit in October 2007 to build her “dream home” in Churton Park.

The building consents were secured and the section readied but then work stopped.

“Nothing happened. I kept phoning [the franchisee] Steve Franklin to ask why nothing was happening.”
In July, she told him she wanted her money back.

After protracted negotiations between their respective lawyers, Mr Franklin agreed to repay $25,000.

Ms Shaw is still waiting. Read full story.

Photo: Andrew Gorrie / The Dominion Post.