Insignia Homes: Building firm collapses owing $6million to creditors and leaving families in the lurch with half-build houses

A construction company has gone bankrupt and owes creditors more than $6 million.

Gold Coast-based Insignia Homes has halted all work at its sites after going into administration on Monday.

This leaves eight Insignia locations languishing, despite homes in the Queensland cities of Toowoomba and Logan nearing completion.

However, a contractor told the newspaper Gold Coast Bulletin there are many other construction projects that have stalled in earlier construction phases.

The company’s sole director, Kevin Ross, said it was “a sad time for everyone involved” but declined to comment further.

Liquidator William Robson of Robson Cotter has been appointed to distribute the company’s assets.

The shares in the company are owned by Keven Ross’ wife Lee Ross through a holding company, while the remainder of the share capital is owned by another company run and managed by Queenslander Peter Ramsay, 73, and his wife Brenda.

Mr Ramsay declined to comment.

In a report, Mr Ross said the company owed $2.72 million to trade creditors, $249,661 to the ATO and $49,500 in customer deposits.

The report also noted $4.6 million due to 84 Dixon, a related company controlled and held solely by Mr Ramsay, while a further $1.29 million is owed to financier CGA Capital.

One creditor, who spoke to the Gold Coast Bulletin on condition of anonymity, said some customers had nothing to show for their deposits despite continued reassurances from the company.

According to the former sole director, Insignia Homes owes money to clients, trade contractors and the tax authorities

“There were complaints from customers who had paid their deposits and were waiting for a start or approval,” they said.

‘They kept saying things were going well, but on Friday they went bankrupt. It shocked all suppliers and customers.”

A subcontractor who claims he is owed more than $100,000 said the carnage in the construction industry has repeatedly left them out of pocket.

“Obviously it sucks because that money comes straight from the profit line,” the person said.

“We paid for everything in advance.”

Data from the Queensland Building and Construction Commission shows Insignia has contracted 31 jobs with a turnover of $10.5 million in 2022-2023.

The Commission recorded 84 jobs for $282 million in the previous fiscal year and 112 jobs for $27 million the year before.

However, for the current fiscal year, Insignia had secured just five jobs totaling $3.95 million at the Commission.

Peter Ramsay is listed as one of the major shareholders of Insignia Homes, along with the former director’s wife

Insignia previously traded as Optima Homes Qld before changing its name in 2017.

It was also reported on Thursday that a major construction company that built homes across Melbourne had collapsed, leaving it with $3.5 million in debt.

Alpha Building Group Pty Ltd was declared bankrupt last Thursday, laying off all its staff and leaving 10 clients with unfinished homes.

The company is now in the hands of administrator Brent Morgan of insolvency firm Rogers Reidy, who said $3.5 million is owed to 100 creditors.