- The announcement was made to employees and creditor on Friday
- $4 million is believed to be owed to the ATO
Snowdon Developments has become the latest builder in a congo line of industry players going into administration.
The collapse of the residential building company has resulted in 550 homes being incomplete, with 262 creditors owed around $17.8 million. The administration was announced to employees and creditors on Friday.
It is believed about $4 million is owed to the Australian Tax Office, with three private creditors owed over $1 million each.
All of the company’s 52 staff were terminated on Friday, when the voluntary administration was announced.
Shane Deane and Nicholas Giasoumi of Dye & Co, Solvency and Turnaround have been appointed as administrations.
Snowdon’s sister company, Pivot Construction Group Pty Ltd is also involved in the administration proceedings, with 74 houses impact, with monies owed to 136 creditors.
“The business was suffering from cashflow and supply issues as a result of the Covid pandemic which has significantly impacted the construction sector,” said the administrators in a report.
“The intention was to trade the company out of its difficulties.”
The announcement comes as a range of major home building and construction companies have gone into administration since the start of 2021, such as Probuild.
More to come…
