PHOTO: FILE
Luxury Home Builder’s Collapse Leaves Property Owners in Financial Ruin
A high-end Christchurch home builder owing $850,000 has sparked outrage after attempting to classify a kayaking course used for a personal race as a company expense. Meanwhile, homeowners are left dealing with unfinished multimillion-dollar homes and costly repairs.
Luxury Builder’s Downfall
John Ross Architectural Builders Ltd (JRB), rebranded as Box 128 Ltd in October, went into liquidation in December. The company’s sole director and shareholder, John Ross Kelleher—known as Jack—had marketed himself as a premier hill-build specialist, promising excellence with every project. However, instead of award-winning homes, some property owners have been left with severe construction defects and incomplete builds.
Trail of Unpaid Debts
Liquidator Brenton Hunt’s report revealed that 42 unsecured creditors were owed a staggering $850,000. Among them was TopSport Kayaking, which provided Grade II kayaking training for Kelleher’s participation in the Coast to Coast adventure race. After media inquiries, Kelleher paid off the remaining $900 balance, yet many subcontractors and suppliers remain unpaid.
Master Builders has also been added as a major unsecured creditor after six claims were filed under the Master Builders Guarantee, citing poor workmanship, unfinished homes, and cost blowouts. Three cases have been resolved, while others are still under review.
Peter Meecham / The Press
Property Owners Left in Crisis
One affected homeowner, who wished to remain anonymous, detailed the financial devastation caused by the company’s collapse. Despite paying $1.7 million for his property, he was left needing an additional $1.2 million to finish the build—including up to $500,000 in remedial work for structural defects. Issues included a necessary full brick re-clad, significant roof and lining water damage, and missing guttering that led to further deterioration.
“The liquidator’s first report speaks for itself—John Kelleher has left not just clients but also subcontractors out of pocket,” the homeowner said.
Company Collapse and Industry Fallout
The liquidator’s report cited labour shortages, supply chain disruptions, and rising material costs as factors in the company’s downfall. Fixed-price contracts meant JRB was unable to absorb these additional costs, ultimately leading to insolvency. Inland Revenue is listed as a preferential creditor owed $10,000, while other secured creditors include concrete suppliers, plumbers, and contractors.
Master Builders chief executive Ankit Sharma confirmed that the guarantee had supported homeowners impacted by JRB’s collapse, but refused to disclose the exact amount owed by Kelleher’s company.
“We are pleased the guarantee has been able to support these homeowners through what is an incredibly stressful situation,” Sharma said.
With property owners left to repair the damage and legal battles looming, the collapse of Box 128 Ltd highlights ongoing issues in New Zealand’s construction sector. Homebuyers are urged to conduct thorough due diligence before signing contracts, as insolvencies among builders continue to rise.
SOURCE: THE PRESS