Top construction company worth $90 million suddenly collapses with a chilling message on its website
- PBS Building went into voluntary administration
- Company had projects in NSW, ACT, QLD
A major Australian construction company that raised more than $90 million last year has voluntarily gone into administration.
PBS Building has built major residential and commercial projects in New South Wales, the ACT and Queensland.
The company had existed for 33 years, but insolvency firm RSM Australia Partners Jonathon Colbran, Richard Stone and Mitchell Herrett announced on Tuesday that the company has now collapsed.
On Tuesday, a message suddenly appeared on the company’s website telling customers it had gone into administration, leaving 180 staff on the country’s east coast out of work.
PBS’ board of directors and company founder Ian Carter released a statement Tuesday saying the team had always prided itself on getting the job done.
“This has been a heartbreaking decision that we know will affect many lives and livelihoods,” they said.
“But after months of intense behind-the-scenes efforts, it was ultimately the only responsible course of action. With regard to our current projects, we have secured, not abandoned, these sites with the express intention of not incurring further costs.
“We took this step to ensure we could negotiate better outcomes with clients for the ultimate benefit of creditors.”
The company said the combination of rising material costs, labor and material shortages, extreme weather and wars had proved “an insurmountable challenge.”
“We are the newest, but we will not be the last construction group to succumb to the weight of a fractured industry and a way of doing business in urgent need of reform,” the statement continued.
Staff were notified of the company’s collapse on Monday.
More to come