Blomfield Consulting puts developer Marcus Jacobson into receivership
Auckland’s Blomfield Consulting has had developer Marcus Jacobson put into receivership personally over a debt, although Jacobson said it was a “stunt” and indicated claims for money were without merit.
A public notice was issued on Friday saying that Gareth Hoole had been appointed receiver of Jacobson – not his companies, but him personally.
Hoole told the Herald that it was only the second time in 29 years as an insolvency practioner that he had been appointed to be receiver of a person instead of a corporate entity.
“It’s an extremely rare move,” Hoole said.
Matt Blomfield of Blomfield Consulting said his business was owed $78,000 by Jacobson after consulting work and that money had been outstanding for some time.
So his company had Hoole appointed.
Jacobson denied owing the money.
“It’s a stunt over a dispute between us. I don’t think his claim has merit.”
Hoole of Ecovis International said that because Blomfield Consulting had a general security agreement over Jacobson personally, it was able to exercise the rare option of receivership of a person.
“He’s had me appointed as the receiver of Marcus Jacobson personally. It’s very unusual for individuals to go into receivership, But it’s not different in some ways than a company”.
The effect is that all that Jacobson owns was now under Hoole’s control.
“I’ve frozen bank accounts and am looking at what else he may have. The point is that I can repay the secured creditor.”
Blomfield Consulting offers planning, project management, litigation support and crisis management services.
“This action was a last resort following extensive efforts to resolve a long-standing debt,” Blomfield said today.
“While it’s always disappointing to reach this point, the facts are not in dispute. The current economic climate continues to put strain on many,” he said.
He cannot say what services were performed for Jacobson due to a confidentiality clause in a contract.
“That prevents me from saying anything about what we are doing for clients.”
Last year, former Whale Oil blogger Cameron Slater was ordered to pay $475,000 to Blomfield after losing one of the country’s longest-running defamation cases.
Slater, via posts on his Whale Oil blog, acted in “flagrant disregard” of Blomfield’s rights, the court found.
But this time, Blomfield’s battle is with a developer rather than a blogger.
Jacobson, a developer working in Auckland and Rotorua, is of Watchman Capital.
But receivership and liquidation has hit his companies lately.
In December, the Herald reported Inland Revenue, Bay of Plenty Regional Council, Fletcher Distribution, ITM, Genesis Energy and Resene Paints as creditors of his insolvent company finishing Rotorua’s Mountview Green housing estate.
Waterstone Insolvency liquidators released a list of secured and unsecured creditors of Jacobson’s Roto Whare.
That was finishing the last of 86 homes in the project when American funders had receivers appointed and Jacobson called in liquidators. Many local and national businesses are creditors, according to Damien Grant and Adam Botterill’s first report.
But the biggest debt was owed to an American business: Florida-headquartered financier Quaestor Advisors LLC of Jacksonville is owed $28.2m.
Secured creditors include Mico New Zealand, Carters Building Supplies, United Timber Merchants, waterproofers H2OFF Central and Albany’s Blomfield Consulting.
Jacobson’s Ormiston housing scheme hit trouble this decade.
Buyers initially had contracts with DDL Estates, directed and owned – via his company Rua Whare – by him.
But contracts were changed and then receivers were appointed to the DDL (Delivering Dreams) housing project at Flat Bush.
In 2021, the Environment Court issued orders for non-compliant work at the same subdivision.
Auckland Council sought orders against Jacobson’s DDL Homes and DDL Estates for work at its project, where land stabilisation created problems.
The council raised alarm at the standard of works and the environmental consequences if it was allowed to continue.
The site was also in the news when a digger was used to attack a new $675,000 home there.
Anne Gibson has been the Herald‘s property editor for 25 years, written books and covered property extensively here and overseas.