Another Aussie builder goes under
Another Australian building company is in trouble, with Victorian-based builders Harmac Group calling in administrators.
The firm on Wednesday confirmed they have gone into voluntary administration, but deny they’ve collapsed, insisting they’ll work with administrators Cor Cordis in order to complete current contracts.
The administrators will examine four subsidiaries under the Harmac umbrella, including; Harmac Homes; Harmac Constructions; Harmac Urban Living; and Ridge Homes.
It’s understood 23 staff have been let go, while a further 15 positions have been retained.
In a statement to Melbourne radio station 3AW, Harmac Group said they will work with administrators to restructure, and they “understand it is devastating news for customers.”
“We want them to know we have not collapsed, we are not in liquidation and the intention is to work closely with administrators to get current customers’ homes built,” the statement reads.
“Given these economic challenges, we had no choice but to enter voluntary administration to restructure.”
In a statement, Cor Cordis said they will continue to provide regular updates to stakeholders.
“We’ve commenced an urgent review of the Harmac Group’s financial position and are working with parties to develop a proposal to restructure the business,” the statement reads.
“We’ve set up an email address for customers, employees, and creditors.
“We will be providing regular updates to all stakeholders as we work through the voluntary administration process.”
Harmac Group is just one of a number of building and construction companies to go into voluntary administration, or collapse completely, in the post-Covid years due to the soaring cost of building materials, and worker shortages.
