Right House shuts door, lays off staff
The loss-making energy efficiency and insulation business has been put into liquidation, forcing 130 staff out of jobs yesterday.
Hot Topic
EARNINGS
Loss-making energy efficiency and insulation business Right House has been put into liquidation, forcing 130 staff out of jobs yesterday.
PWC has been brought in as liquidators by the company’s parent, the international Mark Group.
Liquidator John Fisk tells NBR ONLINE he is hopeful staff will receive all wages, holiday pay and redundancy pay if applicable - the maximum preferencial claim is $20,340 - with that a priority for liquidators.
Westpac, the first ranking creditor, is also likely to be paid, Mr Fisk says, and there are a number of secured creditors who have security over stock. Other unsecured creditors may not be paid, although it is too early to tell until accounts have been looked at and assets sold, he says.
PWC is immediately working through the sale of the insulation business, with a buyer reportedly interested in taking on the 45 staff which work there. It is also looking to sell the heating and solar parts of the business, plus about 100 company vehicles, Mr Fisk says.
The liquidators are investigating just why the business failed but Mr Fisk says it appears it did not have enough customer orders to fill, with reasonably large overheads.
Financial statements on the Companies Office website show it made an after-tax loss of $2.9 million in the year to March 31, 2014, and has negative $1.7 million net assets.
No director fees were paid last year or the year before.
Right House, set up in 2007 by state-owned Meridian Energy and sold in 2011 to Mark Group, has operational bases in Auckland, Christchurch, Hamilton, Dunedin, with its head office is in Wellington.
Calida Smylie
Thu, 05 Feb 2015
Thu, 05 Feb 2015
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Right House shuts door, lays off staff
44949