Simsai Construction: Customers build their dream home as another construction company faces bankruptcy
An award-winning construction company is facing a sudden collapse that could leave its customers with half-finished homes.
The Australian Tax Office has filed an application in the Federal Court for the “winding up” of Simsai Constructions, which operates three construction operations in Western Australia.
Although the fate of the company is yet to be determined, the ATO’s intervention creates serious problems for the Perth-based residential and commercial builder.
More than 2,000 Australian construction companies went bust in the 2022-23 financial year due to labor shortages and rising costs of building materials, electricity and fuel.
Simsai runs apartment builder Multi Develop 360, home designer and builder Express Homes and “help center” First Home Buyers Direct.
Creditors who owe money to an insolvent company usually force the issuance. It is considered unusual for the ATO to file a liquidation notice.
Simsai runs Perth-based apartment builder Multi Develop 360, house designer and builder Express Homes and ‘help centre’ First Home Buyers Direct.
The Australian Taxation Office has filed an application in the Federal Court for the “liquidation” of Perth-based Simsai Constructions. In the photo: one of the company’s residential house projects under construction
When a company’s application for dissolution is granted, the company ceases to exist and its assets are sold.
The issuance of the notification does not, however, mean the dissolution of the company.
“An application for liquidation of Simsai Construction Group Pty Ltd was made by the applicant’s Deputy Commissioner of Taxation on 21/09/2023,” the Australian Securities and Investments Commission said in a statement.
This week the company said Western Australia that he didn’t expect to fold.
“We are aware of the order and we hope it will be resolved in the next two to three weeks,” said a spokeswoman for Simsai Construction Group.
It is understood that Simsai was struggling with cash flow problems due in part to its house and land projects which did not require any progress payments.
First Home Buyers Direct boasts on its webpage: “We can get you into your own home, even if you don’t have any real savings.” »
Simsai Constructions is jointly owned by Ashley Thomlinson, Ann Ambrose, Chris Pottier, Amrish Valand and Mahendra Surti.
Simsai Constructions is co-owned by Ashley Thomlinson (pictured right), Ann Ambrose, Chris Pottier, Amrish Valand and Mahendra Surti.
More than 2,000 Australian construction companies went bust in the 2022-23 financial year. Pictured: One of Simsai Constructions’ multi-unit developments
The federal court hearing is scheduled to take place on November 14.
News of Simsai’s woes came just hours after another WA builder collapsed.
Joondalup-based builder Intellibuild Constructions has had its registration renewal rejected by the WA Building Services Board for financial reasons.
While the company, trading as Boston Keys Pty Ltd, had applied for renewal, the board said it was not “satisfied that the company has met the financial requirements set out in the 2011 Act on construction services (registration)”.
They had been trading since December 2019, just before the Covid-19 pandemic hit and devastated the construction sector.