Owners of collapsed Hanmer building company urged to do decent thing

Saturday, 21 September 2024

Hanmer Building solutions was completing several new builds when the shareholders put the company into liquidation.

It’s an all too familiar story.

A building company with lots of projects on the go collapses without warning.

Suppliers and subcontractors are left counting the cost and clients are stressed over their unfinished builds, wondering where their money has gone.

But the collapse of Hanmer building company, Hanmer Building Solutions, on September 3 with debts of about $1.3m is a bit different.

The company is owned by a well regarded local family headed by John Phillips and his wife Linda. Their son Simon, who disappeared from Hanmer days before the collapse, ran the building company and another son, Jason, runs the family’s electrical business and is also the local fire chief.

John and Linda Phillips, who own part of collapsed building company Hanmer Building Solutions, own several residential properties, including the one pictured and a 122ha farm in Woodbank Rd, Hanmer.

John, originally from the United Kingdom, is both a director and shareholder of Hanmer Building Solutions.

He and Linda own a swathe of valuable Hanmer property, worth at least $9m, but their substantial wealth and community spirit has not, as yet, been used to pay the company’s debts and honour its commitments.

Subcontractors and clients have said they were not amused to hear that he and Linda had just returned from a five-month overseas trip when the company went bust.

Olivia and Wolfgang Reinherdt, who came to Hanmer two years ago, hired the company to build their macrocarpa log house and, just before the collapse paid Simon Phillips $60,000 in advance to complete the next stage of the build. They wonder where their money has gone.

John and Linda Phillips live on a 5ha property, which includes a 336sqm house, in Woodbank Rd, Hanmer.

They also have to find another builder to finish the house and the price could be higher than the price under their contract with Hanmer Building Solutions.

“The decent thing to do would be to sell one of the properties. He doesn’t even have to sell. With all his property he could go to the bank and get a loan and pay the $1.3m,” Wolfgang said.

However, there is no legal obligation for directors to sell personal assets to cover the debts of a limited liability company.

Olivia said Simon was friendly and confident.

OlivIa and Wolfgang Reinhardt, of Hanmer, are left with an unfinished house and extra costs after the collapse of their builder Hanmer Building Solutions.

“He told us he wanted to make us happy. He was very involved and into the job. We never thought we would have problem.

“We know they have a lot of property and land. I would say they should sell something to help all those people who lost money. A lot of people are talking and they are not happy. If he [John] wants to have a good life here, he needs to do something.”

John Phillips could be seen feeding out on his 122ha farm, which backs onto the Reinherdt’s property, on Friday.

“He could fix this and then we could just have a beer,” Wolfgang said.

The company is believed to have five other builds in Hanmer under construction.

Hanmer Building solutions was completing several new builds, including this house, when the shareholders put the company into liquidation.

Another client, who asked not to be named, said he hired Hanmer Building Solutions to build a house in Hanmer in early 2023 for his mother.

“We now have a half completed home that is not weather tight. This was supposed to be her retirement home and it’s turned into a nightmare. I have lost a $55,000 deposit and lost thousands for prepaid work not done.

“It will be difficult for us but I feel for the unpaid subcontractors and staff, many of whom have young families and mortgages to pay. I know them and they are hurting.”

John Phillips declined to be interviewed when approached and said all inquiries should be directed to the liquidator who did not answer calls on Friday.

Jason Phillips also referred inquiries to the liquidator.

This house in a Hanmer subdivision has been left unfinished.

The liquidator could not be reached for comment.

He said he had no idea of his brother’s whereabouts.

Clients of the company have learned the company stopped paying its membership fees of the Certified Builders organisation months ago.

NZ Certified Builders chief executive Malcolm Fleming said: “We are saddened by the closure of Hanmer Building Solutions Ltd.

“NZ Certified Builders will personally call the homeowners of three outstanding projects covered by our Halo Quality Guarantee, which protects homeowners in situations like this.

“We’ll match them with a Certified Builder to complete any unfinished work.”

Simon Phillips was not at home yesterday and is thought to have left Hanmer temporarily.