Geoff Pickford's roofing business is $150,000 out of pocket after Mainzeal's collapse.
The business, which he runs with his wife and employs nine workers, recently put a new roof on Waikato Stadium for the construction giant.
|The roof for Waikato Stadium|
This collapse (similar instances in Australia) that leaves subcontractors out of pocket, broke, bankrupt and simply ripped off is explained in this related article in the New Zealand Herald "Mainzeal collapse needs investigation."
The Mainzeal receivership highlights once again the poor governance of the Richina Pacific group of companies, inadequate corporate disclosure and the vulnerability of unsecured creditors and subcontractors when a construction company goes bust.This is the opening lines of an article by Brian Gaynor on the ins and outs of this shocking collapse of MAINZEAL, involving leather companies, the USA, China, NZ pollies and just about every crooked person around. The comments in the above article show the disgust of dishonesty by business, politicians and the people involved. The human factor is the main casualty of all of this money play - hopefully Geoff, his family and crew of workers can get through this setback.
Let's hope they find the people responsible that are going to cost families, ratepayers and other sub-contractors of Waikato area. This story in New Zealand is as big as the similar circumstance of say Leighton Holdings going under in Australia. There is more to come on this one.
One last question - who supplied the roof material for Waikato Stadium?
Company ASX Update
Hills Holdings (Fielders) ASX HIL closed at $1.02
BlueScope (Lysaght) ASX BSL closed at $3.77
Arrium (OneSteel) ASX ARI closed at $1.18
Fletchers (Stramit) ASX FBU closed at $7.35
Who's in trouble in the shed industry?
Who's leaving Lysaght?
Lots more next week.