Liquidation of Hotondo Homes Hobart: Homebuilder goes into receivership

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A major Australian home-builder has gone into receivership in a state capital, leaving thousands of dollars behind.

Hotondo Homes in Hobart went into receivership and left dozens of people in limbo with unfinished homes following speculation a closure was imminent.

Tasmanian Constructions, owner of the Hotondo Homes franchise in Hobart, notified the Australian Securities and Investments Commission (ASIC) last Wednesday of its closure.

The company had decided at a general meeting on January 4 to liquidate its activities and appoint Jarvis Lee Archer of Revive Financial as liquidator, according to the opinion of ASIC.

NCA NewsWire has contacted Revive Financial, Hotondo Homes and Tasmanian Constructions for comment.

Dozens of construction projects reportedly left in limbo and customers left behind in liquidation

Mercury reported that a customer of the company received an email late Wednesday that Hotondo Homes had gone into liquidation.

“We understand the company was in the process of building residential accommodation for you,” the email read.

“We are currently working with company staff and contractors to understand the current status of each contract and the options available to you.”

It is believed that up to 80 contractors and 40 clients will likely take a financial hit.

Master Builders Tasmania executive director Matthew Pollock told the ABC that the state’s construction industry was under pressure.

“The last 12 months have been characterized by a period of peak demand, driven by HomeBuilder grants, and state and federal governments (are placing) great responsibility on the building industry to lead the economic recovery,” said he declared.

“It coincided with a very difficult time for business with supply chain disruptions, material price increases and trade shortages.”

The closure of Hotondo Homes follows a period of disruption in the building industry in Tasmania, with numerous reports from residents across the state struggling to complete their homes or finding them with defects.

The state was the only jurisdiction in Australia without home warranty insurance, which covers customers if their builder dies, disappears or becomes insolvent, after it was scrapped in 2008.

The Tasmanian government reintroduced home warranty insurance at the end of December, but rejected state opposition calls for an inquiry into the building industry.

Labor Party Building and Construction spokeswoman Jen Butler called in October for an inquiry into “shonky” builders, which Consumer Affairs Minister Elise Archer dismissed as “completely unnecessary”.

“The Tasmanian Liberal Government has made significant reform to our building regulatory framework and supports the streamlining of industry regulations to ensure that strong consumer protections are in place,” she told AFP. the time.

In November, the government merged several existing courts to launch the Civil and Administrative Court of Tasmania, which will be able to handle construction disputes.

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