‘Rippling effect’: 3000 building companies collapse in past year
It’s a brutal time for Australia with businesses being smashed by hard times — and once sector is copping it worse than any other.
New data showed there were 2832 insolvency appointments made in the construction industry over the past 12 months – a figure which has skyrocketed by 28 per cent compared to the previous year when there were 2213 insolvencies, ASIC data has revealed.
Thousands of building projects and Australian dreams have been impacted amid the chaos.
The list of failed enterprises includes Cubitt’s Granny Flats and Home Extensions, which operated in both the ACT and NSW. It went into liquidation in June impacting 130 projects and 80 staff members, while it also had $5.7 million in debt.
Others include NSW builder Alurt Construction that went bust earlier this month with debts of more than $2 million, Project Coordination (Australia) plunged into administration leaving $120 million worth of projects up in the air, while Rork Projects, which operated across NSW, the ACT, Victoria and Queensland, collapsed with debts of nearly $30 million.
