Construction company Harmac Group goes into voluntary administration: Building firm undergoes massive restructure
Construction company Harmac Group goes under voluntary management: Construction company undergoes large-scale restructuring
- Victorian company makes ‘difficult decision’
- Insists that the company has not collapsed and plans to restructure
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Another Aussie construction company has gone under voluntary administration in a desperate attempt to restructure, citing ‘difficult economic conditions’.
Victorian firm Harmac Group insists the company has not gone out of business and plans to work closely with property managers Cor Cordis to complete current clients’ homes.
Subsidiaries – Harmac Homes, Harmac Constructions, Harmac Urban Living and Ridge Homes – will fall under the administration.
Other entities within the group are not subject to administration.
About 23 jobs have been lost, while another 16 employees will keep their jobs for the time being, 3AW reported.
Harmac Group is the latest construction company to go under voluntary management. Pictured is an exhibition home of the Harmac Group
Harmac Group said the “difficult” decision was made to help restructure the company while acknowledging that this would be devastating news for customers.”
“We want them to know that we have not gone bankrupt, that we are not in liquidation, and that the intention is to work closely with property managers to get current clients’ homes built,” the company said in a statement.
“Given these economic challenges, we had no choice but to join a voluntary board to restructure.”
Current projects to be completed include two homes affected by the Porter Davis collapse earlier this year.
Cor Cordis has launched an urgent review of Harmac Group’s financial position and will work with stakeholders to develop a proposal to restructure the company.
‘We have set up an e-mail address for customers, employees and creditors. We will provide regular updates to all stakeholders as we move through the voluntary management process.
Harmac Group builds new 3 to 4 bedroom homes in Melbourne and regional Victoria.
Harmac Homes (completed project pictured) has pledged to work closely with property managers to finalize ongoing contracts
The demise of Harmac Group is the latest blow to hit Australia’s construction industry (image)
The company prides itself on having an unwavering focus on quality, built on a foundation of genuine customer service.
“Building beautiful homes is our promise and acquiring clients for life is our greatest reward,” the website states.
Daily Mail Australia has contacted Harmac Group for further comment.
Harmac Group joins a long list of post-lockdown construction companies that have come under administration as the construction industry grapples with rising material costs and labor shortages.
Other construction companies that have gone bankrupt in recent weeks owed millions of dollars to contractors, suppliers, staff and the Australian tax authorities.
This includes Exel Infragroup Pty Ltd, a company that until recently was the prime contractor on a multimillion-dollar government project.
Harmac Group operates in Melbourne and regional Victoria. Pictured is one of the company’s exhibition residences