- Perth-based company was founded in 1977
- Along with 280 employees, the group has around 500 subcontractors and 400 trade suppliers
- Subcontractors have been pulling workers and equipment off Pindan jobs in recent times
Pindan Group, a Perth-based construction company, has gone into external administration.
Founded in 1977, the company has since expanded nationally with offices in Queensland and New South Wales.
In an email to their 280 employees, managing director Scott Davison and executive director Tony Gerber said the decision to appoint administrators was “the toughest we have ever made.”
“This action was taken as we no longer have the confidence that the companies could continue to trade and meet their debts and obligations as they fell due.”
Currently, the group has 68 active projects and along with employees, the group has 500 subcontractors and 400 trade suppliers.
Sam Freeman, Vincent Smith and Colby O’Brien of accounting and consulting firm Ernst and Young (EY) have been called in as administrators.
In a statement, EY confirmed it was assessing the status of each outstanding contract.
“The administrators … and several liquidators, will be seeking expressions of interests for the group’s business and assets and will provide more detail in that regard shortly,” said EY in a statement.
“We acknowledge our appointment as external administrators may place many employees, individuals, clients, suppliers and subcontractors of Pindan Group companies in difficult positions.
“We will endeavour to provide further updates as soon as practically possible.”
In recent times, the Construction, Forestry, Mining and Energy Union (CFMEU) said subcontractors had been pulling both workers and equipment off Pindan jobs across Perth – including for significant state government projects.
Currently, Pindan Group Pty Lt, Pindan Contracting Pty Ltd and Pindan Asset Management Pty have gone into voluntary administration, while nine other Pindan companies have gone into liquidation.
Various reports suggest Pindan owes as much as $100m to creditors, which includes subcontractors, staff and the Commonwealth Bank.