Ex-AB’s business goes bust
Former All Blacks and Crusaders stalwart Dave Hewett should be red-carded from business after the collapse of his building company, a stung contractor says.
Six of Hewett’s companies including Bainbridge Homes were put in voluntary liquidation on March 19 by a shareholders’ resolution. Christchurch insolvency practitioner Brenton Hunt was appointed liquidator and has yet to complete his reports so total indebtedness is unknown.
Hewett, 52, bought Bainbridge Homes in 2014 but in 2020 the company became insolvent. A deal with creditors allowed the company to carry on with an extra director and two new shareholders.
A contractor, who asked not to be named, said his company was owed about $57,000 after the liquidations and knew of others with unpaid bills. “We were always chasing him for money. He seemed to be teetering on the edge,” the contractor said.
As the building downturn started to bite, the loss of the money would have a major impact on his business, he said.
Although Hewett was not returning calls or replying to emails yesterday, it appears he told home buyers in October he was closing the company. Only one or two homes are thought to be unfinished.
Owners have the option of finishing the homes themselves or exercising their Master Build Guarantee, a form of insurance on projects by its members. Hewett is a member of the Registered Master Builders Association.
Bryan and Michelle Noonan have been left in the lurch with an unfinished $1.5 million house on Cashmere Heights.
On Friday the couple started getting phone calls from contractors asking them to pay their bills and couldn’t help feel partly responsible “even though we did everything right”.
“We really feel for the contractors. While [the liquidation] will mean further delays and extra costs for us, it’s much worse for the contractors who have done good work and been left out of pocket,” Bryan Noonan said.
The Noonans signed a contract with Bainbridge in May 2022 and had hoped to be enjoying their new house by spring 2023. Instead the build didn’t start until March last year and was plagued by delays.
Bryan Noonan claimed Bainbridge seemed “disorganised”. He said when he contacted the Christchurch City Council about delays he learnt for the first time his home would need a resource consent, which the council said it had advised his builder about. The council told him the consent had not been applied for.
Hewett had assured them by email in June last year that his company was solvent.
Hewett played 22 tests for the All Blacks from 2001 to 2003 and was part of four Super Rugby-winning Crusaders teams.
In 2020 he told creditors Bainbridge Homes was unable to pay its debts as they fell due.
It owed about $9m to creditors, including decorators, plumbers, builders and building supplies companies, but had assets of just over $3m. However, the deal with creditors avoided liquidation.
“We are pleased to confirm that with these initiatives in place, Bainbridge Homes are now well positioned to move forward,” Hewett said.
Hewett’s companies put in liquidation on March 19 are Steadfast Properties, BBH 2020, Module Canterbury, Absolute Group and Bainbridge Homes.
Hunt could not be reached yesterday.