Building company collapses with more than 100 projects left on pause

A building company has collapsed, laying off 80 staff and leaving 130 projects on pause. 

Creditors voted to place Cubitt’s Granny Flats and Home Extensions into liquidation on Friday. 

The company, which had been operating for 30 years in NSW and the ACT, went into voluntary administration earlier this year and had debts of $5.7 million. 

It is believed that $2.6 million of that is owed to 77 tradies.

Creditors voted to liquidate Cubitt’s at a meeting last week due to the tough economic climate.

Richard Stone and Brett Lord of insolvency firm RSM Australia have been appointed as liquidators. 

‘The failure of one business has a domino effect on so many people, from staff, to clients, suppliers and other stakeholders,’ Mr Stone told news.com.au. 

‘Today, these impacts are being compounded by a fragile economy and businesses and households who are doing it tough.’ 

Now more than 100 projects, at various stages of completion, have been left in limbo and 80 staff members are without jobs. 

RSM have managed to scrape together what they hope might be some kind of return for creditors.

Acrow Homes Pty Ltd, a NSW-based construction firm, has purchased some of the company’s assets, including Cubitt’s business names and exclusive rights to its customer list.

Insolvency experts previously estimated that Cubitt’s had assets worth $1.67 million.

This comes less than a week after MSN Homes was placed into administration, leaving a trail of financial destruction.

ASIC documents show tradies are out of pocket by thousands of dollars, over $1.5million is owed to 27 other unsecured creditors and the company has a tax bill of $230,000, reported the Courier Mail. 

Businesses Reset on the Sunshine Coast was appointed as administrators of the Brisbane-based building company last month.

ASIC documents list the company’s directors as Mandeep Narang of North Lakes.

He is also a director for MSN Enterprise Group Pty Ltd, which is listed as a creditor, owed $1,200,000.

The company owner said he doesn’t know what happened to MSN Homes, but they were slow to pay invoices.

He said other builders he has worked with have also collapsed.

Construction giant Cavalier Homes also plunged into liquidation earlier this year, owing more than 40 creditors money. 

The company, which traded under Cavalier Homes Geelong, collapsed with at least $680,000 in debt.

The business attributed their collapse to tough economic conditions and limited financial assistance from banks. 

A Cavalier Homes spokesperson told Daily Mail the the business had been struggling for some time due to mounting costs.

‘Due to recent widespread building industry cost escalations Nathan’s business has been unfortunately forced to go into voluntary liquidation,’ the spokesperson said.

‘Despite our efforts trying to assist with Nathans two customers and effected trade partners we deeply empathise with all effected parties.’