Viridi Group goes into voluntary administration: NSW-based construction company has multi-million dollar contract suspended
A construction company that completed projects at Taronga Zoo and Hayman Island has gone into voluntary administration.
NSW-based company Viridi Group has found itself in trouble after its multi-million dollar government contract was suspended, putting about 115 jobs at risk.
CEO Ben Nurmi of the Viridi Group said this news.com.au the contract was suspended due to ‘fiscal challenges’.
“The factory was set up to supply certain products and we were halfway through that contract when we were advised that the contract would be suspended,” he noted.
Mr Nurmi said the company is now operating in a “limited capacity” and focusing on completing work that started before the contract was suspended.
The construction company had set up its factory to supply products as part of a multi-million dollar contract, but the government contract was suspended midway
The company produces and installs temporary emergency housing (photo), as well as luxury cabins and infrastructure in the education sector
The CEO said the company was founded in 2020 and employs 15 people directly, but has a large subcontractor base of 90 to 100 employees.
“Staff will be reduced as supplies are reduced, but at the moment they are still working,” he said.
The construction company has worked on high-profile projects ranging from InterContinental Hayman Island Luxury Cabins, the nature retreat at Sydney’s Taronga Zoo, to emergency flood housing in Lismore and the redevelopment of Sydney’s Cranbrook private school.
The company is an off-site manufacturer of prefabricated construction products and solutions in NSW, such as defense projects, school infrastructure delivery and modular homes for emergency housing.
Christopher Darin and Joanne Keating of Worrells were appointed volunteer administrators of Viridi Group on April 5.
In a statement from WorrelsThe administrator said that the company’s director told them that the move to voluntary governance was necessary due to the suspension of the government contract and to protect the interests of all key stakeholders.
Viridi Group CEO Ben Nurmi said the company was blindsided when it learned about the suspension of the lucrative contract
“The director appointed voluntary trustees as the only responsible course of action available after urgently exploring financial options and seeking professional advice from various parties,” Mr Darin said.
‘This decision has been extremely difficult.
‘The administration process is still in its early stages and we are working hard to immediately establish the company’s financial position and operations so that we can continue to trade the company on a limited basis during the voluntary administration.’
The company’s financial problems forced it into Safe Harbor under the Corporations Act in September 2023.
Under Safe Harbor, directors can address a company’s financial problems behind the scenes, allowing a company to operate under the supervision of an advisor.
Mr Nurmi said business was good under the Safe Harbor plan, but this was based on disposable income, with the government making a significant contribution to revenue.
“The CEO is confident that the company will get out of trouble and continue to operate,” he said.
Daily Mail Australia contacted Viridi Group and Worrells.