Montego Homes goes into administration as Victorian construction company hits pause on projects
Another construction company has gone into voluntary administration, immediately halting all projects.
Victorian Montego Homes appointed Cor Cordis as administrators on Monday.
“We have begun an urgent review of Montego Homes’ financial position and are urgently seeking a buyer to restructure or recapitalize the businesses,” administrators said.
“We will provide regular updates to all stakeholders as we move through the voluntary management process.”
Another construction company has gone into voluntary administration, immediately halting all projects
Victorian Montego Homes appointed Cor Cordis as administrators on Monday
The construction company specializes in house and land packages and currently has 18 projects – all of which have been put on pause.
About 90 customers will be affected, while 11 employees have been laid off.
Several customers claimed they were unable to contact the builder.
The Victorian Managed Insurance Authority has issued 78 domestic construction insurance policies to the company since 2021.
Master Builders Victoria CEO Michaela Lihou said it is the latest company to buckle under the pressure of inflation, interest rates and supply and demand issues.
On December 7, W3D Constructions Pty Ltd, which operates from Surfers Paradise and is owned by Ross Wolbers, went into liquidation.
Mr Wolbers’ company is owed $1.2 million and the collapse will leave a construction job at his former school, Southport School (TSS), unfinished.
W3D Constructions owes $1.278 million to almost 50 creditors, including $275,000 to NAB, according to a report by liquidator Matthew Bookless of SV Partners, the Courier Mail reported.
Mr Wolbers’ wife, Louise, is the daughter of property developer Norm Rix, one of Queensland’s richest people.
The construction company specializes in house and land packages and currently has 18 projects – all of which have been put on pause
The Australian Taxation Office is also listed as a creditor for an undisclosed amount, as is Aluminum and Fabrication, which is owed almost $208,000.
TSS hired Mr Wolbers’ company to upgrade the school’s sports pavilion and day care facilities.
The school has since worked with other builders to complete the job.
Outsourced trades were told to get their tools and leave work stations as projects came to an abrupt halt.
“We don’t deserve that, especially at Christmas,” one person told the Courier Mail.
Just over $30,000 of the company’s assets worth $275,000 are listed as cash, according to the creditor’s report.