Stonewood Homes New Zealand is now publicly apologising to any customers of its former Dunedin franchisee Graeme Sneddon "who feel they did not receive the experience they deserved".
Mr Sneddon ran the Stonewood Homes Dunedin franchise until May 2024 and his company — Braemar Building Ltd — is in liquidation owing an estimated $850,000.
Now, Regan McCormack is trying to distance his separate Stonewood Homes Otago business, which he has been operating for the past 18 months, "as much as we can with the Sneddon name".
"We’re not affiliated to Graeme Sneddon.
"He's got nothing to do with the Stonewood name or anything any more."
After seeing him wearing a Stonewood-branded jacket at a supermarket this week, a man in his 50s told him it was "disgusting" what they had done to people and they were "a bunch of c....", Mr McCormack said.
He found the whole scenario pretty frustrating.
"I've had the franchise now for 18 months, coming up two years, so we really just want to try and move past that."
Stonewood Homes New Zealand general manager Gregg Somerville said due to "historical issues" surrounding the Stonewood Homes Dunedin brand, the company created an entirely new and separate trading entity, Stonewood Homes Otago, owned by Mr McCormack.
There was "ongoing confusion" among members of the public, who incorrectly associated the historic matters of Mr Sneddon’s franchise with the new Stonewood Homes Otago business.
"At times this has been expressed with extreme hostility, such as Regan being verbally abused for wearing Stonewood Homes-branded clothing in a public space."
Stonewood Homes Otago was independently owned and operated and had no operational, financial or managerial connection to Mr Sneddon or Braemar Building, Mr Somerville said.
He confirmed Mr Sneddon operated Stonewood Homes Dunedin from 2008 until May 2024, when "a combination of commercial, operational, and performance-related factors" contributed to a decision to mutually agree to an early termination of his franchise agreement.
Mr Sneddon had built hundreds of homes over a long period and many customers were satisfied with their experience.
"However, we fully acknowledge that not every customer received the level of service Stonewood Homes has been known for since the brand was established in 1987.
"As the national master franchisor, we sincerely apologise to any customers who feel they did not receive the experience they deserved."
Mr McCormack took on the franchise during a particularly difficult period for the residential construction sector nationally, "while also needing to address misconceptions linking his business to the former franchise," Mr Somerville said.
"Regan was already building homes in Otago prior to joining Stonewood Homes and came with strong client endorsements and Master Builders membership.
"He continues to operate a customer-focused business with a strong emphasis on quality, compliance and transparency.
"Stonewood Homes is supporting him to ensure the public clearly understands his business is separate from historic issues."
The Otago Daily Times has fielded several complaints about Mr Sneddon after his company Braemar Building Ltd — formerly Stonewood Homes Dunedin Ltd — was placed into liquidation in November.
The total shortfall to all creditors was estimated at $850,000, and Master Builders had commenced liquidation proceedings against the company, the liquidator’s first report said.
Mr Sneddon did not respond to a request for comment before deadline yesterday.
