Wellington-based construction company Armstrong Downes Commercial (ADC) has gone into liquidation.
An ADC project - The Paddington - sits unfinished as the construction company announces liquidation. Photo: RNZ / Angus Dreaver
Two of the company's largest projects suffered major losses as a result of fixed prices in an economic environment of spiralling costs, procurement challenges, and labour shortages.
Liquidators David Ruscoe and Russell Moore have been appointed from Grant Thornton and have taken control of all ADC construction sites, which are temporarily closed.
The decision follows an unsuccessful attempt at restructuring the company's contracts.
Armstrong Downes Commercial currently has eight construction projects underway in Wellington. ADC is the head contractor in most cases but does not directly employ any staff as its workforce is employed by other Armstrong Downes group companies.
"These sites have been temporarily closed as it's in the best interests of all stakeholders to protect both ADC and third-party assets, and to allow time to assess available options for each site going forward," Ruscoe said.
Grant Thornton said it would be contacting all ADC customers and suppliers in the next few days.
"It is important for sub-contractors to know we will be returning their assets as soon as practicable, and we will be working with employees from other Armstrong Group companies to facilitate this," Ruscoe said.
In 2019, the company found itself involved in a court case after plumbing contractors completed incompetent work at a Lower Hutt retirement village that Armstrong Downes Commercial built.