The company that held the franchise for real estate agency Knight Frank in New Zealand from 2012-18, KFNZ Ltd, had an estimated $1.46 million deficit when it was wound up in March.
It was the third iteration of international agency Knight Frank in New Zealand, and all have ended badly.
This latest one was run by Layne Harwood & Linda Coleman, Ms Coleman as sole director and she & partner Mr Harwood as the shareholders. Ms Coleman told the court when the company was wound up it failed after losing a major contract and with cashflow issues.
KFNZ Ltd changed its name to VPH Management Ltd in May last year, ceased trading on 1 June after selling most of its business & assets to Bayleys Realty Group Ltd, and the company was wound up in the Auckland High Court on 8 March. Colin Owens & David Vance (Deloitte Ltd) were appointed liquidators.
The liquidators’ first report, posted on the Companies Office file on Friday, shows the estimated $1.46 million deficit.
Mr Harwood & Ms Coleman are the shareholders, and Mr Harwood sole director, of a new company incorporated on 30 May 2018, Layne Harwood Ltd, and Mr Harwood has been working as an agent at Bayleys.
The previous Knight Frank iteration, Knight Frank Auckland Ltd, ran from 2006-10, ending with a $3.45 million shortfall for creditors, who got back 5c in the dollar.
That business was effectively a joint venture between Knight Frank Australia Pty Ltd & local company Link International Ltd, mostly an industrial agency supported financially by Knight Frank Australia, which made the decision to cease support and to exit the local market.
Starting in 1995, Knight Frank NZ Ltd operated as a subsidiary of LPL Group Ltd (owned by NZX-listed CDL Investments NZ Ltd), providing services to Landcorp Property Ltd & CDL Land NZ Ltd. By the time it was wound up in 2001, that version of Knight Frank had reduced its $1.6 million of share capital to $143,000 through 6 years of accumulated losses. Its liquidators sold the remaining assets for $200,000.
The global parent headquartered in London, Knight Frank LLP, still has a subsidiary registered in New Zealand, RE Licensing (NZ) Ltd, originally registered here in 1988 as Baillieu Knight Frank (NZ) Ltd. In its last financial report filed with the Companies Office, in 2014, it recorded total liabilities of $885,000 and negative equity of $17,400.
10 August 2018: Bayleys confirms Knight Frank NZ acquisition in strategic partnership with international consultancy
Attribution: Companies Register.