New franchisee 'to be appointed'

The parent franchise operator of Highmark Homes - whose Otago franchisee was placed in liquidation a week ago owing more than $700,000 - has said a new company will "shortly be appointed for the Dunedin area".

During the past week, several calls have been made to the offices of Tauranga-based managing director of the privately owned parent of Highmark Homes franchises, Bob Hunt, but he has not returned calls.

In recent years, when five other, separate, branded building companies' Otago franchisees went into receivership or liquidation, the parent franchisee often stepped in to offer assurances of contract completion and assist new franchisees to take over.

Other than the Dunedin-based liquidators giving assurances they hoped three Hallmark Homes under construction can be completed, liquidators do not know if any Hallmark contracts are outstanding.

While the value of assets of P&A Design Ltd, which traded as Highmark Homes Dunedin, is yet to be determined, liquidators have outlined almost $713,600 of debts to secured, preferential and 54 local, unsecured creditors, the latter owed $366,700.

In an advertisement in the Otago Daily Times yesterday, placed by Hallmark Homes Ltd, whose directors and shareholders are listed on the Companies Office website as Michael and Esther Bonne, of Ohope, it was noted all Highmark franchises were independently owned and operated.

"It is unfortunate that in these circumstances other franchises in the brand are often tarred with the same brush."

Highmark Homes gave reassurances that the Central Otago and Southland franchises of Highmark were separate from Dunedin and were in a "strong position" and would continue the same level of service that "all our clients have enjoyed".

"Highmark Homes Ltd wishes to advise that a new franchisee will shortly be appointed in the Dunedin area."

• P&A Design Ltd was incorporated in May 2007, with Paul Garbutt sole director and a 50:50 shareholder along with Andrea Simonsen.

- simon.hartley@odt.co.nz