A construction company that was part of Australian construction giant Cavalier Homes has gone bankrupt with debts of at least $680,000.
Station 293 Pty Ltd, which was founded in Victoria in 2015, went into administration on Friday.
The housebuilder traded under construction company Cavalier Homes Geelong and Nathan Downing Builders.
Cavalier Homes Geelong is one of 19 franchises managed by major construction operator Cavalier Homes.
Tradies have been left out of the bag after construction company Station 293 Pty Ltd went bankrupt last Friday (photo stock image)
Liquidator Clifford Sanderson has been appointed and more than forty creditors have been contacted. news.com.au reported.
Its director, Nathan Downing, has told him that about $687,000 is owed and that only two projects were active at the time of the company’s collapse.
“Normally it turns out to be more than the director initially said,” Ms. Sanderson told the publication.
Daily Mail Australia has contacted Mr Sanderson and Mr Downing for further comment.
The collapse of Cavalier Homes Geelong has not affected staff working at the company, but Mr Sanderson said “loads of tradies”, along with a major bank and the ATO, are listed as creditors.
Cavalier Homes Geelong existed since 2017.
The Geelong branch of Cavalier Homes no longer appears on the company’s website.
The company attributed their collapse to difficult economic conditions and limited financial support from banks.
Cavalier Homes Geelong (pictured) collapsed with debts of at least $680,000
According to their website, Cavalier Homes are “affordable homebuilders” who are “committed to delivering quality without the high price tag.”
The collapse of Station 293 Pty Ltd comes after construction company Main Facilities Pty Ltd was placed into administration last Wednesday.
The company’s employees were informed via Zoom that they had all been fired after the company declared bankruptcy and owed $7 million to creditors.
As many as 2,349 construction companies collapsed in Australia last year, as the sector continues to struggle through a period of high inflation.
The RBA kept interest rates unchanged at 4.35 per cent on Tuesday as Australians and businesses continue to battle the ongoing cost of living crisis.
Cavalier Homes was contacted for comment.