‘TOTALLY DEVASTATED’: All staff fired as building company collapses

PHOTO: Langford Jones Homes

Customers have been left hundreds of thousands of dollars out of pocket as yet another builder goes bust, owing $14.2 million.

Dozens of homeowners and hundreds of tradies have been left reeling after a Victorian building firm quietly collapsed.

Last week, staff, contractors, suppliers and homeowners learned that Langford Jones Homes had been placed into voluntary liquidation, with liquidators putting out a statement on Monday evening.

More builders tipped to go bust leaving homes unfinished | WATCH

The company specialised in custom-designed residential homes along Melbourne’s bayside and south eastern suburbs as well as the Bass Coast and was named after the Langford-Jones family, who run the business.

According to liquidation documents obtained by news.com.au, the home builder owes $14.2 million in unsecured credit and has more than 300 creditors. One supplier claims he used his life savings to buy materials in the expectation that the builder would pay but is yet to see a cent.

Several former employees who spoke to news.com.au quit their jobs months ago sensing the company was on the brink of collapse — with one claiming 60 per cent of builds were not turning a profit.

There are also 65 houses impacted. Homeowners close to completion facing massive losses as insurance only covers up to 20 per cent of the contract price.

BUILDING CRISIS: Another building company in liquidation

‘My dream is gone’

Donna Taylor, a postwoman in Phillip Island south of Melbourne, signed with Langford Jones in 2020 and only has a frame after 18 months on her $365,000 build.

“My dream gone,” the devastated homeowner told news.com.au. “I am totally devastated like so many other people. Tears are rolling down my face (right now).”

Langford Jones Homes is the latest to join a growing list of failed building firms as rising costs for construction materials and the ongoing supply chain crisis sparked from the Covid-19 pandemic coupled with locked-in price contracts have driven many to collapse.

Donna Taylor says her dream has been ruined by the company’s sudden collapse.

Her frame, which cost $70,000, might need replacing as it has not been covered with a roof and has been sitting uncovered for months.

Brurob Nominees Pty Ltd, also known as Langford Jones Homes, and also its sister company Woodside Building Services Pty Ltd, went into liquidation last week.

A creditors’ voluntary liquidation was called last Thursday, on June 30, and the following morning shocked staff, creditors and homeowners were informed that the company was no longer operating via email.

Construction sector on ‘brink of collapse’ | WATCH

Richard Stone and Jonathon Colbran of RSM Australia Partners were appointed as joint liquidators.

Mr Stone told news.com.au that his investigation was in “very early stages” and that the total list of creditors and amount owed could be more.

Ms Taylor, 53, said she suspected something was wrong with the company for a long time because of extreme delays to her dream home.

“It’s taken a year and a half and all I’ve got is a frame,” she said.

Even that is in doubt, as it has been uncovered for 2.5 months during heavy rain and some of the wood has turned black, causing her to fear the whole $70,000 structure needs replacing.

One time, the rain was so “horrendous” Ms Taylor rushed to her building site and used a mop and a broom to wipe away the water.

Bank’s brutal house price prediction

News.com.au has attempted to contact the Langford-Jones family for comment.

Homeowners affected by the closure of Langford Jones Homes should contact Vinod Karunasinghe via email at vinod.karunasinghe@rsm.com.au, according to the liquidator.

adsense