New Stonewood owners terminate agreements with founder's franchises
posted on 24th March 2016
24 March 2016 - Stonewood Homes' new owners have severed ties with the building firm's founder Brent Mettrick. These include not just the Christchurch franchise which they previously bought from the receivers. but also the West Coast, New Plymouth and Blenheim franchises of which Mr Mettrick was a director, after he took the companies over from failing franchisees. In most franchise agreements, liquidation is grounds for termination. Although the three franchises were not themselves in liquidation, in the opinion of new franchisors Inno Capital they were not 'financially sound.'
Mettrick said he had no issue with the Inno's decision to cancel the franchise agreements.
In reference to the outstanding franchise fees, Mettrick's solicitor Mark Odlin said the entities may owe historic franchisee fee arrears to Stonewood Homes New Zealand Ltd, a debt which Inno may have purchased from the receivers.
If it was the case, the entities, not Mettrick personally, owed the money to Inno.
Before making the decision, Webber said Inno Capital was in contact with the Registered Master Builders Association. It has plans to ensure homeowners affected by the decision got "the best outcomes".
Meanwhile, work to complete the first 50 homes in Canterbury affected by Stonewood's receivership started this week.
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