Another building company has collapsed, marking a grim start to 2023, with administrators revealing it owes $1.4 million.
On Monday, Western Australian building firm Metro Homes WA Pty Ltd, which also trades as Hamlen Homes, collapsed into administration.
There are 18 projects that have been impacted by the collapse with 11 residential builds underway for clients.
Seven staff members, including directors, are also impacted by its demise with wages up to date but superannuation still outstanding.
The firm owes 30 creditors $800,000 and there is $600,000 worth of outstanding debt due to the Australian Taxation Office.
Clifford Rocke and Greg Prout of WA Insolvency Solutions have been appointed as administrators.
“We are looking at restructuring/recapitalising Metro Homes, which is part of the Hamlen Group of Companies, through the wider group,” Mr Rocke told news.com.au.
“At this stage we are not trading Metro while we consider the possibility of restructuring or recapitalising the business.
“We anticipate contacting all homeowners and the wider group of stakeholders by February 15 at the latest. We’re still waiting for information from the directors. It is still early days and we continue to do our investigations.”
The Perth-based building firm has been a registered company since April 2013, according to documents.
The Hamlen Homes website and Facebook page is no longer active.
The West Australian reports that some projects had stalled for months, causing one customer to seek legal action.
Its offices have also reportedly been shut down.
Hamlen Homes had also secured a $42 million building gig as one of the developers on a residential development with townhouses and apartments.
The development, slated for East Victoria Park, had been approved, but building had not yet commenced.
It is unclear how many staff are at the company and affected by its collapse.
The demise of Hamlen Homes comes at the same time that another building firm collapsed.
On Monday, news.com.au reported that major NSW apartment developer EQ Constructions had gone bust owing at least $40 to $50 million.
The construction industry has been struggling as many companies are facing financial ruin and unable to turn a profit because of current market rates.
In the past month, award-winning residential construction company Delco Building Group in Victoria went under owing $780,000 to 50 creditors, as well as Hamlen and EQ Constructions.
It also emerged in January that two more construction companies in Western Australia went under due to labour shortages and increasing construction costs.
A number of large firms entered into insolvency over the past year including Probuild, Condev Construction, Pivotal Homes, Waterford Homes, Privium, Home Innovation Builders and Norris Construction Group.
More Coverage
It was caused by a perfect storm of supply chain disruptions, skilled labour shortages, skyrocketing costs of materials and logistics, and extreme weather events.
alex.turner-cohen@news.com.au
– With Sarah Sharples
Read related topics:PerthncG1vNJzZmivp6x7r7HWrGWcp51jrrZ7xaKlmqaTmnyjwdKipZ6ro2S8tbTEq2SippSqwLW%2ByJ6qaKiVp8GpecGuoKWcmaO0bq%2FOpqeapqlitaK5y56lZqCforK0ecKoo6WZoKiytHnIp6uoZZGZuqq6yKyrq5mknryve82erqxlo6m8s8WObJhpnWRosKewwnJqnmhnm7F4fcCebGxsZWl%2BpHyTmpk%3D