PHOTO: Staff made redundant and left out of pocket and projects stranded at 50 per cent completion as Sydney-based builder collapses. FILE
Another construction company has faced a financial collapse, as Alpine Projects Australia, based in Sydney, appointed liquidators earlier this week, resulting in the loss of jobs for all 26 of its employees.
Alpine Projects Australia, also known as Alpine Designer Projects, is a sister company to Allura Homes, based in Lane Cove, which had previously fallen into liquidation in July, as reported by news.com.au. Liquidator Mohammad Najjar of Vanguard Insolvency stated that he was appointed on September 19, and “all 26 staff were terminated on September 20.”
Najjar confirmed that the affected employees have been left without their rightful pay, annual leave, long service leave, and superannuation benefits. His primary objective is to ensure that the staff are compensated as much as possible. Najjar mentioned that Alpine, specializing in residential construction, has three ongoing projects, each approximately 50% completed.
Alpine Projects worked on residential buildings including this one. Picture: Supplied
While the exact financial status of the failed business is still under evaluation, Najjar indicated that its liabilities appear to amount to millions of dollars, with a significant number of creditors, including contractors and tradespeople who collaborated with Alpine.
Najjar stated that he is still in the process of assessing the assets of the business, with the majority consisting of debtors who owe money to Alpine, along with some equipment. While the reasons for the company’s collapse are still being investigated, the company directors have attributed it to a combination of factors, including labor shortages, fixed-price contracts, supply chain delays, and the ripple effects of the pandemic. Allura Homes Pty Ltd, which fell into liquidation in July, had 39 residential projects in progress.
The appointed liquidator for Allura Homes, Dane Skinner of insolvency firm Raft Consulting, mentioned that the homes were at various stages of completion.
“There is a variety – from initial deposits with letters of intention to the construction phase and practical completion, subject to defect claims,” he informed news.com.au.
All 11 employees of the firm lost their jobs immediately, although it is understood that four had resigned before liquidators were brought in.
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In July, Mr. Skinner had reported that Allura Homes appeared to owe creditors $3.3 million, but this figure has since been updated to $8.2 million. Despite this substantial debt, the business has estimated assets valued at only $160,000.
Mr. Skinner attributed the company’s failure to its inability to cope with inflation pressures and expects to present his report to creditors by October 24.
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