10 Feb 2009

Wellington building firm collapses

12:28 pm on 10 February 2009

A David Reid Homes franchise in Wellington went into liquidation on Monday, the third franchise to fold in recent months.

The Pukekohe and Marlborough franchises have also folded recently. The company has 23 franchises around New Zealand.

Despite the collapse, the company's general manager Ben Allan is confident the network is robust.

Mr Allan said although there has been an overall softening, there are areas in the market that remain strong.

He said the recent decrease in interest rates as well as some stronger immigration flows could provide the necessary impetus for an improvement in the building sector.