Hundreds of unsecured creditors could lose almost $1 million in the latest construction collapse in the Sunshine Coast as the region experiences its second building firm collapse in less than a month.
According to the Sunshine Coast Daily, Worrells Maroochydore liquidator Paul Nogueira says collapsed home builder Desu had gone into liquidation with secured debts totalling $491,000 and unsecured debts worth around $359,000. The money is owed to between 50 and 60 unsecured creditors.
Nogueira said the decision to shut the firm’s operations was regrettable but was the right thing to do.
“It’s not pleasant for creditors but the directors have obviously done cash flow projections and decided it was wiser to close now than to continue trading,” Nogueria is quoted as saying, adding that the firm’s demise may partly have been caused by a decline in demand for its kit home product.
The collapse of Desu – which had previously traded as Nu-Steel Homes Australia Pty Ltd and Nu-Steel Homes Qld Pty Ltd – follows the earlier collapse of Seachange Caloundra Pty Ltd, which was operating the Hotondo Homes Caloundra franchise.
A creditors meeting is scheduled for October 9.
Generally speaking, building industry conditions within the Sunshine Coast region are improving as demand for new housing gathers momentum.
Almost 3,600 new dwellings were approved for construction throughout the region in the 12 months to July – up by nearly a quarter compared with the previous 12-month period.
Nevertheless, the sector has seen a number of collapses in recent months involving building, flooring and roofing companies.
The latest developments come as the Senate Inquiry into Construction Industry Insolvency continues.
Recent hearings in Melbourne have focused around the collapse of builder Walton Construction and evidence it had been trading insolvent since June 2012.
Walton collapsed in October 2013 with debts totalling more than $80 million.