South Australian builder, Qattro Built Pty Ltd, has collapsed.
Placed into liquidation on 12 September 2023, the company is widely reported to owe more than $4.5 million and leaves behind over 200 incomplete homes.
The liquidators appointed are Christopher Powell and Nicholas Gyss of DuncanPowell.
In a statement published on the Qattro website, Bradley Jansen said he was devasted to make the decision after three challenging years trying to recover the post-Covid financial sustainability of the company.
“I know the closure of the business will have a significant impact on its many long-term employees, clients, contractors, and various local sporting clubs and charities that Qattro has strongly supported over the last 15 years… for this, I apologise,” Jansen said in the statement.
“New projects secured are profitable, however, the existing projects with underwater fixed price contracts are still weighing too heavily on the ability to get to the other side,” the statement continued.
Jansen added that he has done his best to protect staff and suppliers.
“I can truthfully say I have put all my personal assets into the business to try to push through but attempts to absorb the $7.5 million in cost increases over the last few years have wiped the balance sheet.”
Yesterday, Cedar Woods (ASX: CWP) issued a statement to the ASX.
The company noted that Qattro was building Cedar Woods’ townhouses and apartments at the company’s Fletcher’s Slip development in South Australia.
The projects included were:
- 11 two-storey townhouses in stage 1B of the development, which have been sold as turnkey house and land packages and are close to completion,
- 35 two-storey townhouses in stage 2A of the development, where buyers have already settled on a contract with Cedar Woods to purchase land and have entered into a separate contract with Qattro for the construction of their homes. The land subdivision work has been completed by Cedar Woods and Qattro has commenced construction on these homes for the buyers, and
- Early site works recently commenced on Sirocco apartments.
Cedar Woods noted that the townhouses are covered by builder indemnity insurance, which is expected to cover any additional costs to complete the homes up to $150,000 per townhouse, if required.