Firm goes into liquidation leaving nearly 50 projects unfinished
A Queensland builder has collapsed owing creditors more than $7 million and leaving nearly 50 projects incomplete, the latest in a string of business failures rocking the construction sector.
LDC Pty Ltd was based in Holland Park in Brisbane’s south, according to a report by The Australian. Liquidator Bill Karageozis, of Mcleods Accounting, took control of the company Friday.
Initial investigations showed that LDC owed creditors about $7.03 million. Those creditors include more than 130 subcontractors and suppliers, LDC shareholders and other parties. The company, which was founded in 2018, will be wound up, The Australian reported.
“It’s very early days,” Karageozis told the publication. “At this stage we have very limited financial information. It obviously owes a lot more than it owns in assets. As you know, these things take time.”
Karageozis said that there were 48 building sites affected by the liquidation in South East Queensland. He said the Queensland Building and Construction Commission had been made aware of the liquidation.
“They will contact the low owners who have partially completed projects,” he said. “We will work with the QBCC to make sure they get what they need.”
Karageozis said that at the time of his appointment, LDC had 45 full-time, part-time, and casual employees.
“We are looking into the affairs of the company [to] see why it went down and try to get as much money as possible for the people who are owed money,” he told The Australian.
Read next: Another Queensland builder collapses
The collapse comes on the heels of Melbourne builder Hallbury Homes going into voluntary administration last week. Hallbury went into administration with more than 50 unfinished projects. The past 18 months have seen many similar collapses in the construction sector, including high-profile builders like Probuild and Oracle.
The sector as a whole has been buffeted by supply chain issues, skyrocketing material costs and labour shortages, with the country’s largest builders seeing their profits tumble by more than 50% last year.
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