Published 19 February 2008
The Joneses real estate company took a bigger dive yesterday than the industry it’s tried to break into with a no-commission flat-rate offer to vendors.
I heard an industry leader say on TV last night the cut-rate proposition plainly didn’t work. Maybe offering vendors a flat rate didn’t work, though it can hardly have made it past a trial stage. What really didn’t work was a capital-raising in a market where that had become virtually impossible, and the creation of a real estate sales business at the turn down from the top of the market. No matter how bright the idea, trying to do both the capital-raising & the market entry in this climate showed unwarranted optimism.
So TJRE Holdings Ltd, the sole shareholder of The Joneses Real Estate Ltd, placed The Joneses in voluntary liquidation.
TJRE had proposed making a backdoor NZAX listing through a Brett Wilkinson shell, RLV No 3 Ltd. TJRE’s directors said they needed to raise $1.5-4 million in new capital and didn’t get enough. They explored alternative funding sources for the real estate business but director Chris Taylor said these wouldn’t have given the business the cashflow it needed.
Mr Taylor said sale & purchase deposits were held in a trust account so they weren’t at risk. He didn’t mention the costs to vendors of abruptly halted promotions.
Liquidators are Arron Heath & Mike Lamacraft (Meltzer Mason Heath).
12 December 2007: The Joneses to list on NZAX through Wilkinson shell
Attribution: Company release, story written by Bob Dey for this website.