Rescon Builders, Rescon Granny Flats, enter bankruptcy with over $3.9 million in debt and over 50 affected customers

An award-winning granny condo builder has gone bankrupt, leaving more than 50 clients with unfinished projects and more than $3.9 million in debt.

Rescon Builders Pty Ltd, also known as Rescon Granny Flats, is now controlled by Christopher Darin of insolvency firm Worrells.

In a statement on Friday, Worrells said dozens of customers are out of money following the company’s sudden shutdown.

“Worrells reports that more than 50 customers have been severely impacted by the liquidation of Rescon and have contacted Worrells to file a claim and seek documentation related to their project,” the statement said.

“Currently, claims against the Rescon total more than $3.9 million with recoverable assets of less than $100,000.”

Several clients claimed their granny flats were unfinished and posted one star reviews (photo, allegedly dodgy work done by Rescon)

Worrells has urged Rescon employees who are owed money to file a complaint.

Their missing funds may not be recoverable from the sale of Rescon assets, but they may receive some money from the government’s Fair Entitlement Guarantee.

It is clear that customers with supposedly unfinished granny flats have not been able to contact Rescon for several months.

A woman claimed she owed $16,000 and has filed a complaint with NSW Fair Trading.

“Very slow, it’s taken me a year and I’m still not done,” she wrote in a review eight months ago, warning other customers not to “trust” the company.

‘The staff is very rude and no one answers phone and emails. Landscaping not done, leaving the trash everywhere.’

Another Sydney customer shared their bad experience with the company.

Very poorly managed with terrible customer service and communication. Signed our contract in December 2021 and six months later we still haven’t started!’ They wrote.

“They only contact you if something needs to be signed or paid, then you get excuse after excuse why they’re behind schedule.”

Another customer also claimed that they should take the matter to Fair Trading as they felt threatened and intimidated by the staff.

“I was yelled at on the phone several times, hung up on, kept saying they were too busy and didn’t want to contact the company again,” their review read.

“What an absolute nightmare – the most unprofessional and intimidating experience of my entire life.”

Rescon has been a renowned builder of granny flats around Sydney, Illawarra, Central Coast and Newcastle since opening in 2012

Another customer said they gave the company one star “because we can’t give you a zero.”

How long does it take to build a granny flat? With this company, you’re looking at two years or so,” they said.

Mr Darin said his teams at Worrells are working to recover as much money as possible to begin paying back Rescon’s huge debt.

“My team and I will report to the creditors in due course on any actions available to the liquidator that the creditors can repay,” he said.

Since opening in 2012, Rescon has been a renowned builder of granny flats around Sydney, Illawarra, Central Coast and Newcastle.

In 2017, the company won a Master Builders Association Excellence in Housing Award, with CEO Timothy Cocaro saying at the time that he ‘couldn’t be more proud’.

“Australian families will have no greater investment or asset than their home and so we treat every project as if it were our home,” said Cocaro.

Several reviewers said they had a positive experience with the company and would use the builder again.

Several reviewers warned potential clients to avoid Rescon, citing alleged unfinished work (above)

‘Our luxury Granny Flat from Rescon has just been completed and I must say we are very pleased with the end result,’ said one customer.

“We had a few issues and when I notified head office, it was resolved within 24 hours. No problem was too big or too small, this cannot be underestimated as this is extremely important when building.’

Another said their granny flat was “beautiful, just what we wanted.”

Rescon Builders sent an automatic email upon contact that referred customers to the liquidators.