The Third Chapter:
Examining the Business Practices of Wade Glass and Paul Southam: Allegations of Unpaid Debts and Shifts in Loyalty
Introduction
This article, the third in our investigative series, delves deeper into the controversial business operations of Wade Glass and Paul Southam, examining claims and allegations regarding their financial strategies and business practices. These observations have raised significant concerns within the industry about potential unethical conduct and its impact on various stakeholders.
Alleged Unsettled Financial Obligations
It has been alleged by various sources that Glass and Southam have consistently failed to settle financial obligations with suppliers, creditors, and professional service providers. Reports suggest that larger financing firms like Maui Capital and Crasborn Bros experienced substantial amounts of money tied up for extended periods, beyond the originally agreed terms. However, it remains unclear whether all these funds have been fully settled, raising questions about the final resolution of these financial obligations.
Glass’s Response to Allegations
In response to the allegations regarding overdue creditors and delayed payments, Wade Glass provided an explanation, stating: “We covered the slow payment of creditors following the cyclone, and that we’re nearly out of that. Most have been supportive except one smaller supplier, who we terminated. Everyone in HB has been paid or is very close to it. South Island has been slow but again, we’re nearly up to date and will be by the end of July. Our business is seasonal and all current year costs are now incurred, product shipped, and we are waiting for customers to pay.” This statement suggests that while there have been delays, efforts are being made to resolve these issues.
Claims of Miscommunication and Blame Shifting
In an interview, Wade Glass reportedly deflected blame onto others, alleging poor communication. This claim, made by Glass, should be examined in the context of his legal proceedings. He is often quoted citing external factors such as adverse weather events and changing market conditions for his payment delays. This pattern, if corroborated by further evidence, might suggest a systematic issue with how financial obligations are handled.
Lifestyle in Contrast with Business Practices
Despite frequent financial distress within their businesses, Glass and Southam are said to maintain a lavish lifestyle, including the use of private jets and the purchasing of expensive homes. This contrast, highlighted by public records and observations, raises questions about their priorities and management styles.
Impact on Local Businesses and Families
There are claims from affected parties that Glass’s frequent shifts in business focus and loyalties have led to significant financial losses, affecting generational families and small business owners. These claims, often coming from those directly impacted, suggest a ripple effect from Glass’s business dealings that have led to the closure of established businesses.
Allegations of Faulty Equipment Sales
Specific allegations have been made regarding the importation and sale of substandard Sino trucks by Glass’s operations. These trucks are claimed to have been faulty and caused significant operational disruptions for buyers, purportedly leading to financial ruin for several.
New Insights into Financial Dealings
Wade Glass has demonstrated a capacity to engage in large deals without significant initial investments. He has often relied on professionals and companies to carry out financial arrangements on his behalf, which has raised eyebrows within financial circles. Notably, it is the suppliers and professionals who bear the costs of putting these deals together, as they then don’t get paid despite agreements. Moreover, when disputes arise, they are forced to expend additional resources fighting for their due payments, while Glass has already moved on to his next target. This pattern of behavior has led to growing concerns over the ethical standards of his operations.
Prior to his dealings in Hawkes Bay with Maui and Crasborn, all of Glass’s deals were heavily laden with debt and devoid of any significant equity, necessitating the use of the sale and leaseback model as a key strategy for making deals happen. This approach has been a staple in Glass’s financial toolkit, enabling him to undertake large-scale acquisitions without upfront capital.
Concluding Insights
The narrative surrounding Wade Glass and Paul Southam’s business operations is filled with serious allegations and claims that, if proven, could reflect poorly on their business ethics and practices. The key takeaway for the business community is the importance of conducting thorough due diligence and advocating for mechanisms that protect against potentially exploitative practices. As these matters continue to be subject to legal review and potential litigation, the future of Glass and Southam’s business endeavors remains uncertain. What remains clear is the increasing scrutiny and potential backlash from an industry seeking greater accountability.
