PHOTO: Montego Homes
Yet another construction company has entered voluntary administration, leading to an immediate halt on all ongoing projects. Montego Homes, based in Victoria, has enlisted Cor Cordis as administrators, initiating a prompt assessment of the company’s financial standing and actively seeking a buyer for potential business restructuring or recapitalization.
Administrators stated, “We’ve initiated an urgent review of Montego Homes’ financial position and are urgently seeking a buyer to restructure or recapitalize the businesses. We will provide regular updates to all stakeholders as we navigate through the voluntary administration process.”
Victorian-based Montego Homes appointed Cor Cordis as administrators on Monday
Specializing in house and land packages, Montego Homes currently has 18 projects, all of which have been temporarily suspended. The pause affects around 90 customers, and 11 employees have been laid off. Some customers have reported difficulties contacting the builder.
The Victorian Managed Insurance Authority has issued 78 domestic building insurance policies to Montego Homes since 2021. Master Builders Victoria CEO Michaela Lihou attributes the company’s collapse to the mounting pressures of inflation, interest rates, and supply and demand challenges.
In a similar vein, on December 7, W3D Constructions Pty Ltd, operating from Surfers Paradise, entered liquidation, owned by Ross Wolbers. The company, owing $1.2 million, has left a construction project at The Southport School incomplete. Creditors, including NAB and Aluminium and Fabrication, are owed substantial amounts.
The building firm specialises in house and land packages and currently has 18 projects – all of which have been put on pause
The Australian Tax Office is also listed as a creditor for an undisclosed amount. TSS, the Southport School, had hired W3D Constructions for upgrading facilities, but the school has now engaged with alternative builders to complete the projects. Subcontracted tradespeople were abruptly instructed to leave work sites, causing disruptions during the holiday season.
According to the creditor’s report, W3D Constructions has just over $30,000 in cash on hand out of its nearby $275,000 in assets.
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