Wellington-based Insulation Firm Collapses

Friday, February 6th, 2015
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A home insulation business employing 189 people nationally has collapsed.

John Fisk of PwC was appointed liquidator of Right House Ltd on February 4, according to Companies Office records.

PwC was appointed by a special resolution of shareholder Mark Group.  The company made 133 staff redundant on Wednesday and a further 45 work for the insulation part of the business which is expected to be sold in the next few days, Fairfax Media reports.

Rival Smart Energy Solutions has offered work to about 50 staff from Right House.  Petone-based Right House provides renewable energy solutions, including installing insulation.

It reported a loss of $2.9 million in the year to March 31, 2014 and did not pay a dividend.

The company had nine staff earning more than $100,000, according to the annual report.

It was in breach of the financial covenants on its term loan with Westpac, but all but one of the breaches had been waived by the bank. The company owed $981,000 on the loan at year-end.

Mark Group had provided a letter of financial support on September 29 and a letter of credit to Westpac as security.

The company argued it was an ongoing financial concern because it had the support of its parent and auditor BDO issued an unqualified opinion on that basis.

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