A bespoke South Australian residential home builder has collapsed and appointed an external administrator.
Residence Building Group is the latest builder in the state to enter voluntary administration, following the collapse of four other companies over several months.
The company has seven current home builds, including a project in the Adelaide Hills and homes under construction in the eastern suburbs of Magill, Prospect and Burnside.
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Residence Building Group appointed Agile Business Advisory as its external administrators on Tuesday, October 3.
A spokesperson for Agile said the current homes under construction were largely complete, but it would be a priority of the business to support those customers to get their homes finished.
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The company’s managing director David Menner said in an email to customers, obtained by 7NEWS.com.au, he hoped another builder would take on the remaining homes.
“I am looking to work with another building firm, which would give clients the option to quickly transition their project to this business, and allow me and my staff to continue project managing their project to ensure it can be delivered as soon as possible,” he said.
“My deepest sympathies to my clients, equity partners, trades and suppliers.”
An Agile spokesperson said a preliminary estimate of the company’s records revealed it had about 60 unsecured creditors who are owed about $500,000.
The business also owes about $180,000 to secured creditors, $700,000 to the Australian Taxation Office and $100,000 to employees’ superannuation funds.
Agile said Residence Building Group employed four staff members, including its managing director.
Their employment would be terminated today, October 5.
In his email, Menner outlined his two-year fight to keep the business afloat while battling challenges such as material price increases.
“This is not a decision that I have come to without doing everything in my power to keep the doors open, to deliver clients’ projects and keep my staff in employment,” he said.
“The effects of COVID-19, combined with the pressure the HomeBuilder program placed on the industry, inflation and a fixed price environment, has culminated in incredible pressure being placed on the sector to deliver homes without significant losses.
“For smaller, boutique businesses such as mine, the pressure has been too great.”
Last month, Qattro Homes, a larger South Australian builder, was placed into voluntary administration, leaving 200 customers with unfinished homes.
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