Liquidators have taken over dwelling builder Porter Davis, whereas building agency Lloyd Group has gone into voluntary administration.
Here’s a breakdown of who has been caught up within the collapse of the 2 firms.
HOW MANY CUSTOMERS ARE AFFECTED?
* Porter Davis: There are greater than 1500 properties in progress in Victoria and 200 in Queensland. An additional 779 clients have signed contracts for which constructing is but to start out.
* Lloyd Group: 59 state and native authorities tasks are below building in Victoria and NSW.
HOW MANY EMPLOYEES ARE IMPACTED?
* About 470 individuals at Porter Davis Homes Group
* About 200 individuals at Lloyd Group
KEY QUOTES:
* “Notwithstanding the financial support from shareholders and lenders, the group has exhausted options to secure the further funding required to allow Porter Davis to continue to operate viably.” – Liquidators Grant Thornton
* “Like others in the construction sector, and despite significant effort, Lloyd Group has been unable to overcome increasingly challenging circumstances over recent months that have eroded project margins.” – voluntary administrator Sam Marsden
* “Labor was warned about the issues in the industry and refused to help. The coalition’s support for the industry through COVID is now being jeopardised by Labor’s neglect” – federal opposition housing spokesman Michael Sukkar
* “A serious fall in building approvals, combined with today’s news and the existing contraction of Victoria’s supply of new housing stock, is just making home ownership further and further out of reach for Victorians.” – Victorian opposition spokeswoman for dwelling possession Jess Wilson
* “Another day, another major construction company goes into liquidation in absolutely devastating news for subbies who now risk not getting paid for work done and families whose home construction are now left in limbo.” – impartial ACT senator David Pocock
* “It’s usually understood that the bigger the company, the more likely they are to be around to finish the build, but it’s actually in reverse. Now it’s the smaller building companies that are the safer bet.” – Association of Professional Builders co-founder Russ Stephens
OTHER BUILDERS THAT HAVE GONE BUST IN THE PAST YEAR:
* Probuild in March 2022
* ConDev in March 2022
* Oracle Building Corporation in August 2022
Source: www.perthnow.com.au
