One of New Zealand’s larger building groups Mainzeal Property and Construction has collapsed into receivership.

PWC partners Colin McCloy and David Bridgman were appointed as receivers for Mainzeal and associated entitities, as a result of a request made by directors to Bank of New Zealand.

The company is understood to have about 400 staff.

Mainzeal director Richard Yan said that after “a series of events that had adversely affected the company’s financial position” and a general fall off in commercial construction work, the company could no longer continue trading. The company was no longer getting shareholder support he said.

Receiver Colin McCloy said they were committed to doing the best they could for suppliers, staff and subcontractors of Mainzeal.

“We will work closely with all parties involved with Mainzeal contracts to determine the best way forward,” he said in a statement issued today.

The company has been involved in the Christchurch rebuild through projects including the demolition of Clarendon Tower, a 17-storey central Christchurch building, which was badly damaged in the February 22 quake.

The receivers were not available for further comment.

Mainzeal announced in October last year that it was setting up a new company structure due to difficult trading conditions.

What a shock, I was still quoting for these guys several weeks ago. This is going to hurt the industry really bad, a friend of mine is also affected (about 10K) who knows how many of these commercial firms and sole-traders will now flood into the residential sector killing the rates just to stay on top of water. Mainzeal has massive operations also here in Auckland, the next few weeks will be very interesting.  I feel sorry for all the guys that now have to chase their money, what a pain!

Hope every one comes out OK, really feel for you guys.

Whats going on....the news is like a horror story, all the time.

Terrible news....    I hope all involved find a way through. And John Key thinks Nz is going A-Ok? Its not funny anymore John....hasnt been for a while now. The land of the long white cloud is sinking..

This is a sign of the times with the Governments hands off approach.  They are doing the same to our industry and others where they are attempting to get it all self certifying so that if something goes wrong they can say "take the trademan to court, its their problem as they certified it".

The only people who will win will be the lawyers, investigators, advisers and the insurance companies.

As for the tradespeople, we'll be forced out of business and the country will go backwards as it won't be worth being in a trade, the risk will be too high. It will be safer flipping burgers. 

totally agree watchdog.....the ones spoiling it are the ones prospering by it all....sad

Interesting I wonder what will be achieved

Mainzeal fallout – URGENT read down
To all MPGD members

First of all I would like to convey our concern for members affected by the Mainzeal receivership announced last week.

Although MPGD is unable to do anything directly that will help, I can advise that the NZ Specialist Trade Contractors' Federation on which we are represented is, with our support, going into bat on behalf of specialist trades. Member organisations are gathering like information to support our position.

Confidentiality is assured. We will simply take the necessary details to compile into a general data record to enable us to have a clearer picture of what the impact is on our members/ industry. This information will be extremely important in the forward discussions with government to try and achieve change and eradicate the vulnerability security of payment and retentions leaves specialist trades in, and the trickle down or domino effect that occurs when company collapses of this nature occur.

We would ask that you please complete the survey in the link below by ticking the relevant boxes or typing in your response beside each question.