All State Construction Solutions in liquidation following steel price increase
The collapse of a major SA building firm has left creditors chasing close to $2m as soaring material prices continue to squeeze the industry.
Business
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A construction company that worked on major projects including upgrades to the Convention Centre, State Library and O-Bahn tunnel has collapsed owing creditors close to $2m.
North Plympton-based All State Construction Solutions provided formwork, scaffold and safety services for construction and infrastructure projects across the state but closed its doors last month after battling soaring steel costs and a downturn in commercial projects.
Liquidator Nick Cooper from Oracle Insolvency Services has been appointed to wind up the company after the final 20 employees were laid off.
Mr Cooper said employee wages and entitlements had been paid to affected staff, leaving the ATO as the major unsecured creditor alongside a small number of suppliers who had been left out of pocket.
“All State Construction Solutions Australia was a leading provider of formwork, scaffold and safety solutions across the construction industry,” he said.
“Unfortunately, once again we’re seeing the impact of the rising cost of materials on a construction-related business. All State Construction Solutions Australia buckled under the pressure of skyrocketing steel prices.
“When Covid hit major construction projects dried up. The business relied on JobKeeper payments but with the rising costs of materials and commercial work sporadic as the economy emerged from the pandemic, the business could not recover from the challenges.”
Mr Cooper said All State had also geared itself up for a $3m contract to support a major refurbishment of The Playford hotel, by investing heavily in equipment to complete scaffolding work for the project.
But a delayed start to the upgrade, due to Covid-19, hit the company’s finances as projects across the industry dried up.
All State was established in 2018. ASIC records show that Jason Gepp is the sole director of the company, which is owned by the Kinter family.
The company’s website suggests it once employed close to 40 staff, supporting a number of major projects across the state.
In recent years it has provided scaffolding and formwork services to major commercial and infrastructure projects, and apartment developments including the Hyde Park Place and Brighton Dunes projects, and the Salt Apartments at West Lakes.
Liquidators are investigating whether they will be able to recover any outstanding income for work completed on recent projects, while assets including scaffolding equipment will be sold off to repay creditors. There are no incomplete jobs.
South Australia’s construction industry has until now weathered the storm that has caused a string of company failures in the eastern states, as builders continue to face a surge in costs caused by severe shortages of materials and labour.
Sydney construction firm Next, Melbourne’s Probuild and Queensland’s Condev are among the larger building companies to have collapsed over the past 12 months.
Construction insolvencies in South Australia have been limited to a handful of smaller firms, while the big players have taken a hit but survived.
However Mr Cooper said the industry continued to face challenges on several fronts.
“It is vital that any construction business or affiliated supplier to the industry that’s in trouble seeks professional help before it’s too late.”
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