When a luxury home builder you’ve trusted suddenly goes under, the fallout hits hard. For the Coromandel community, the collapse of David Reid Homes Coromandel in late 2024 has left subcontractors unpaid and homeowners with unfinished builds.

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Total debt owed to creditors: $4 million ·
Date of liquidation order: Late 2024 ·
Number of subcontractors affected: Tens ·
Liquidators’ report released: July 2025

Quick snapshot

1What happened
2Financial impact
3Who is affected
  • Subcontractors left tens of thousands out of pocket (Waikato Times)
  • Homeowners with unfinished builds (Waikato Times)
  • Creditors awaiting recovery (Waikato Times)
4What’s next
  • Contact the liquidators for claims
  • Review official liquidation notice on Gazette
  • Seek legal advice if you have a contract

Seven key facts about the company’s financial and legal position tell a stark story.

Label Value
Company Name Design & Build Coromandel Limited
Trading Name David Reid Homes Coromandel
Date of Liquidation Application 5 September 2024
Date of Liquidation Order Late 2024
Total Debt Almost $4 million
Number of Affected Subcontractors Tens
Liquidators’ Report Date July 2025

What happened to David Reid Homes Coromandel?

Why did David Reid Homes Coromandel collapse?

  • The company, trading as David Reid Homes Coromandel, was placed into liquidation by the High Court in late 2024 (Whangamatā community report).
  • An application for liquidation was filed on 5 September 2024, published in the New Zealand Gazette on 17 September 2024.
  • The collapse is part of a broader pattern of failed construction franchises in New Zealand (Otago Daily Times).

When was David Reid Homes Coromandel put into liquidation?

The High Court at Hamilton issued the liquidation order on 25 November 2024 (Whangamatā news).

Who put the company into liquidation?

The application was made by a creditor, and the court appointed liquidators to handle the process. The liquidators’ first report was released in July 2025 (Waikato Times).

The upshot

The speed of the collapse — from application to court order in under three months — suggests the company’s financial troubles were already severe when the first creditor moved.

How much money does David Reid Homes Coromandel owe?

What is the total debt owed to creditors?

According to the liquidators’ report, the collapsed builder owes creditors almost NZ$4 million (Waikato Times investigation). Another report put the figure at about NZ$4.1 million (Waikato Times follow-up).

How many subcontractors are affected?

Tens of subcontractors are out of pocket, with some reportedly owed tens of thousands of dollars each (New Zealand Herald).

What is the Companies Act breach?

The liquidators flagged that the company may have breached the Companies Act — a serious allegation that could lead to legal action against the director (Waikato Times report).

What to watch

If the Companies Act breach is proven, the director could face personal liability — offering a slim chance of recovery for creditors who otherwise would get nothing.

Who are the liquidators and what did their report reveal?

What did the liquidators’ report say?

  • The report, released in July 2025, confirmed total debt of almost $4 million (Waikato Times).
  • It also noted a possible breach of the Companies Act (Waikato Times).
  • The liquidators’ final report indicates the liquidation process is now complete (MV Professionals liquidators’ report).

What are the implications for creditors?

Unsecured creditors — including subcontractors and suppliers — are likely to recover only a fraction of what they are owed, if anything. The liquidators have no duty to pursue claims that are not cost-effective.

Are there any legal actions?

Whangamatā news reported that liquidators may be preparing legal action against the director of Design & Build Coromandel (Whangamatā community report).

Bottom line: Design & Build Coromandel Limited is a failed franchise that left behind a $4 million hole. Subcontractors must file their claim now and homeowners should seek legal advice before paying another cent.

What are the impacts on homeowners and subcontractors?

How are subcontractors affected?

Subcontractors report being tens of thousands of dollars out of pocket, with promises broken by the luxury home builder (Waikato Times). One subcontractor described it as “broken promises” from a company that appeared solid.

What should homeowners do if they have a contract?

Homeowners with unfinished builds should immediately contact the liquidators to register their claim. Legal advice is strongly recommended, especially if deposits were paid. The New Zealand Herald noted that similar collapses have left homes half-built (NZ Herald).

Are there any alternatives for unfinished homes?

Homeowners may need to hire a new builder to complete the project, but recovering the deposit from the liquidation is uncertain. The official liquidation notice is available on the New Zealand Gazette.

“Broken promises from a prominent Coromandel builder.”

— Subcontractors quoted in the Waikato Times

“The collapsed homebuilders owed almost $4 million and may have breached the Companies Act.”

— Liquidators’ report, cited in the Waikato Times

Is David Reid Homes still operating in New Zealand?

Are other David Reid Homes franchises still open?

David Reid Homes is a national franchise network. Individual franchises — such as Pukekohe and Waikato — operate as separate legal entities. However, the brand has seen multiple failures over the years, including a Wellington franchise that went into voluntary liquidation in 2024 (New Zealand Herald).

What is the difference between David Reid Homes Coromandel and other franchises?

Each franchise is a separate company. The Coromandel franchise was operated by Design & Build Coromandel Limited, which is now in liquidation. Other franchises may continue to trade under the David Reid Homes brand, but the parent company does not guarantee their financial health.

What is Design & Build Coromandel Limited?

This is the legal entity that traded as David Reid Homes Coromandel. It was placed into liquidation in 2024. An earlier franchisee, East Coast Developments Limited, also traded as David Reid Homes Coromandel and was liquidated in 2019 (MV Professionals liquidators’ report).

The pattern

The Coromandel franchise has collapsed twice under different owners — a red flag for anyone considering a David Reid Homes contract in the region.

Confirmed facts vs. what’s unclear

Confirmed facts

  • Company was placed into liquidation by High Court in late 2024 (Whangamatā news)
  • Liquidators’ report released July 2025 showing $4m debt (Waikato Times)
  • Subcontractors are owed tens of thousands of dollars (NZ Herald)

What’s unclear

  • Whether creditors will recover full amounts
  • Exact number of homeowners affected
  • Legal outcomes of any Companies Act breach proceedings
  • Whether the director will face personal liability

For the Coromandel community, the choice is clear: subcontractors must file claims quickly, and homeowners should scrutinise any remaining contracts with the David Reid Homes brand — or risk being left with an unfinished house and no recourse.

Additional sources

lexology.com, reddit.com, stuff.co.nz

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Frequently asked questions

How do I file a claim against David Reid Homes Coromandel liquidation?

Contact the liquidators directly. The official notice on the New Zealand Gazette provides contact details. You will need to submit a proof of debt form with supporting documents.

What is the role of the liquidator?

The liquidator takes control of the company’s assets, sells them, and distributes the proceeds to creditors in order of priority. They also investigate the company’s affairs and report any breaches of the law.

Can I still get my deposit back?

Deposits paid are likely considered unsecured claims. Recovery depends on the amount of available funds after secured creditors are paid. It is unlikely that unsecured creditors will receive full repayment.

Are there any other David Reid Homes franchises I can trust?

Each franchise is independently owned. However, the brand has a history of failures, including collapses in Wellington (2009 and 2024), Coromandel (2019 and 2024), and others. Always check the specific company’s financial health before signing a contract.

What is the history of David Reid Homes in New Zealand?

David Reid Homes has been a franchise network since at least the 2000s. The parent company itself was placed into liquidation in 2016 (DigitalNZ record of liquidation notice). Multiple franchise failures have been reported over the years.

How long does the liquidation process take?

Liquidation of a company like Design & Build Coromandel typically takes 6–12 months, but complex cases can take longer. The liquidators’ final report was issued in July 2025, indicating the process is substantially complete.

Where can I find the official liquidation notice?

The official notice is published on the New Zealand Gazette website. Search for “Design & Build Coromandel Limited” to find the original notice.

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