Fear and rage as builder goes bust

NewsMail reporter Clementine Norton tries to get a comment from Designer Homes Wide Bay yesterday.

Max Fleet

ANGRY tradies ripped roller doors from a half-built Designer Homes Wide Bay house yesterday, after news broke the company has gone into liquidation.

Police were called as the doors were being removed from the home on Starfish Crescent in Bargara, but it was too late to prevent the goods being taken.

The company’s directors Justin Ryan and Ben Hayhoe did not answer telephone calls yesterday, leaving creditors and customers scared that they will not see a cent.

At their Barolin Street offices, a liquidator was already taking inventory as removalists took away furniture and electrical equipment.

“We are still examining the situation to find out how much is owed,” liquidator Ross Duus said.

“The phone hasn’t stopped ringing all day with creditors and people who are building homes.”

One customer, who did not want his name published, said he was worried he would lose thousands of dollars he had paid as a deposit.

“I only found out through the grapevine (that the company had gone broke),” he said.

“My house hasn’t been started, so I don’t know if I will be eligible for any insurance.”

In a letter sent to some of the company’s creditors on Wednesday, the directors said they had pumped in $200,000 of their own money in a fruitless effort to keep the business afloat.

“All office furniture, vehicles, materials, (and) directors residences will be sold off to repay outstanding debt,” the letter said.

“Words can not describe the disappointment we feel in knowing we can not meet our current debts and no amount of apologies will replace the time or money that you have invested or are currently owed.”

Building Services Authority (BSA) general manager Ian Jennings said the company had a number of projects at various stages of development in and around Bundaberg.

“BSA will contact homeowners affected by the company’s collapse and work with them to assess any entitlement they have under the Queensland Home Warranty Scheme,” Mr Jennings said.

Any subcontractors or suppliers affected by the company’s collapse should contact the liquidator Ross Duus on 3870 7388.

BROKE BUILDERS

Coral Coast Homes and Steelsmart Kit Homes went into administration in June last year, owing more than $1 million.

Bundaberg Master Homes went under in May last year, leaving $1.5 million in debts.

GJ Gardner Bundaberg was stripped of its franchise in November last year when its BSA licence was suspended after failing to meet financial requirements.