Chatham Homes collapses: Melbourne construction company goes into liquidation
- A construction company collapsed
- Chatham Homes has been placed into liquidation
A Melbourne-based construction company has collapsed out of $2 million.
River Dale Building Group Pty Ltd, which traded as Chatham Homes, went into voluntary liquidation on Monday.
All 16 employees were laid off and the company owes about $2 million to 200 creditors.
Andrew Schwarz, of insolvency firm AS Advisory, was appointed liquidator of the company on Monday.
“The business was operating but it was virtually out of cash,” Mr. Schwarz said. News.com.au.
“It is unfortunately a casualty of the industry, of all the usual pressures, increased costs, delays, supply constraints.”
It appears that 50 owners were affected by this sudden closure.
River Dale Building Group has reportedly failed to carry insurance for a small group of customers, meaning they are likely to lose their property deposits.
Teachers Louise and Brett Strachan face losing $32,000 after discovering there are no policy or insurance numbers in their names.
The couple began engaging with Chatham Homes in 2021, but construction on their home has yet to begin.
“I just think we work so hard. I can’t believe anyone took that amount given how hard we worked to save it. I hope the government will help. Otherwise I would lose all confidence,” Ms Strachan said.
Following the collapse of major Victorian builder Porter Davis Homes earlier this year, the government created a rescue package for construction industry customers whose deposits were uninsured.
However, the program ended on June 30, meaning Chatham Homes customers, like the Strachans, were left behind.
Melbourne-based construction company collapsed with $2 million