HEARTBROKEN: Marian and Katarina Majo Matus in the backyard where the granny flat should be for Katarina’s mum, who is arriving from Slovenia in May. Avalon Homes Group Pty Ltd, trading as Avalon Granny Flats, went into liquidation on Friday the day after an excavator had arrived to clear land for the slab. Photo: John McCutcheon
HEARTBROKEN: Marian and Katarina Majo Matus in the backyard where the granny flat should be for Katarina’s mum, who is arriving from Slovenia in May. Avalon Homes Group Pty Ltd, trading as Avalon Granny Flats, went into liquidation on Friday the day after an excavator had arrived to clear land for the slab. Photo: John McCutcheon

Dreams shattered as another builder goes bust

A MOOLOOLABA granny flats builder has gone into liquidation, racking up debts of up to $1.219 million and leaving Coast customers heartbroken.

Avalon Homes Group Pty Ltd, trading as Avalon Granny Flats, has collapsed.

Liquidator Paul Nogueira of Worrells Solvency and Forensic Accountants Maroochydore said based on conversations he had yesterday with customers of the company the totality of what was owed to them might be substantially higher than that indicated by the director.

Worrells was appointed liquidator of the company last Friday. Lee Williams Janssen was its sole director and secretary.

The Summary of Company Affairs provided by Mr Janssen showed there was no cash in the bank, $172,000 in trade debtors, a vehicle equity of $5000, an as still unreconciled loan to the director, and no real property, plant, equipment or stock.

Employee entitlements of $16,000, a tax debt of $50,000 trade creditors of $239,500, customer claims of $254,784 and financial loans and shortfalls of $65,000 amounted to $625,284.

However, documents filed with the Australian Securities and Investments Commission show known creditors owed a combined $1.219 million.

Marian and Katarina Majo Matus in the backyard where the granny flat should be for Katarina’s mum. Photo: John McCutcheon
Marian and Katarina Majo Matus in the backyard where the granny flat should be for Katarina’s mum. Photo: John McCutcheon

Katarina Matus lost her father last year, a family tragedy that has led to the planned relocation of her mother from Slovakia to the Sunshine Coast.

What was to be an orderly relocation has been thrown into chaos with the liquidation of the company Mrs Matus had entrusted to build a "granny flat" in the grounds of her and husband Marian's Mountain Creek home.

Mrs Matus said contracts were signed mid-December for the granny flat for their Mountain Creek home, which was meant to be ready for when her mother arrived in May. Avalon Granny Flats was to have secured approvals, supplied a granny flat kit, laid the slab and connection services to lock-up stage.

The slab was supposed to have been laid in January with rain the excuse for that not happening. The excavator only arrived last Thursday, the day before Avalon Homes Group Pty Ltd went into liquidation. By that stage $33,200 had been handed to the company for approvals.

"It's not good to have three generations in the same space," Mrs Matus said. "Everyone needs their space."

Another customer, who did not want to be identified, told the Daily his well-laid retirement plans to the Noosa hinterland had been destroyed after he paid Avalon Homes Group Pty Ltd more than $100,000 for a granny flat.

The customer said the intent was to live in the flat while he constructed his retirement home.

The hinterland property is now on the market to recoup the loss.

He felt foolish after paying a $15,000 deposit in October, and then further amounts of $26,000 and $54,000 for materials he said were never ordered or paid for.

The Avalon Homes Group Pty Ltd was incorporated on September 18, 2014 and traded as Avalon Granny Flats from premises on Brisbane Rd, Mooloolaba.

It operated in the construction industry, primarily designing granny flats, arranging building materials and referring construction to various builders.

Documents filed with ASIC show the director had indicated the company and its business began experiencing financial difficulty about December last year.

The reasons he gave for insolvency were continued trading losses, non-collection of trade debtors, inadequate budgeting and financial management and excessive use of credit.

The Daily attempted to contact the company.



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