One of Queensland’s biggest homebuilders is in liquidation, leaving the future uncertain for more than 200 new build homes and 16 staff.
One of Queensland’s biggest homebuilders has gone into liquidation, leaving the future uncertain for more than 200 new build homes in the southeast of the state.
Sunshine Coast building company Pivotal Homes, once a sponsor of the Gold Coast Titans, went into liquidation on Thursday night.
Chief executive Michael Irwin said rising labor and construction costs had strangled the business.
“In my 30 years of experience, I have never seen a set of circumstances like this and we are obviously not alone in these unfortunate conditions the industry is facing,” he said. to Mail Mail.
“We are absolutely devastated for our 16 employees at Pivotal Homes and assure that all creditors, contractors and sub-contractors have been paid in full.
“All buyers are in a net gain position, which means the job they paid for is done. In fact, they had more work done on their house than they paid for.
Derek Cronin of Cronin Miller Litigation, speaking on behalf of Pivotal Homes, said liquidation was the only option the company had left after falling into dire straits.
“Pivotal Homes’ decision to go into liquidation was based on forward projections dictated by increasingly challenging market conditions, including exponentially rising material costs,” he said.
“It’s an unfortunate set of circumstances that is impacting the industry across Australia.”
The construction sector has been hit hard by collapses this year.
Two major Australian construction firms, including Gold Coast-based Condev and industry giant Probuild, have already gone into liquidation this year.
Smaller operators like Hotondo Homes Hobart and Perth, Home Innovation Builders and New Sensation Homes, and Sydney-based Next have also collapsed, leaving homeowners out of pocket and with homes unfinished.
An industry insider told news.com.au earlier this year that half of Australian construction companies are on the verge of collapse as they are insolvent, and it could see thousands of homes affected within months. coming.
Operators in other industries also fell.
Send, a company that promised to deliver groceries in less than 15 minutes, collapsed earlier this month, jeopardizing the jobs of 300 staff in Sydney and Melbourne.
Australian investment firm REMI Capital was also placed into voluntary administration on Wednesday.
Mark Prestige, who had been a managing partner at REMI Capital for nearly four years, acknowledged there had been a “lack of communication” from the firm in recent weeks.
“Remi had been advised by outside legal counsel not to communicate for the past few weeks until the modeling was complete, which made this difficult decision possible,” he wrote in an email addressed investors, shareholders and former staff members.
“REMI apologizes for any lack of communication over the past few weeks. We ask that you trust all reports to creditors and not rely on any speculation you may hear.
Its property portfolio covered a range of areas in Melbourne, including projects in the suburbs of Tarneit, Rockbank, Sunshine, Pakenham, Laverton and Sunbury.
Chris Baskerville of insolvency and corporate recovery firm Jirsch Sutherland has been appointed as a director.
He said it was too early to say what happened, with his company now undertaking urgent investigations to determine where the $70 million went.
“We are undertaking an urgent financial assessment and working closely with administrators to try to find a solution and deliver the best outcome to investors and creditors,” he said.
“One of those solutions will likely be a deed of corporate arrangement (DoCA) proposed by the directors.”