Collapsed Snowdon Developments bought out by Victorian builder Mimosa Homes

The collapsed company has left hundreds of homeowners and creditors in the lurch. But now an unlikely development might bring a happy ending.

A collapsed building firm has been partially bought out less than 24 hours after going bust.

On Wednesday, news.com.au reported that the Victorian Supreme Court had ordered builder Snowdon Developments to go into liquidation.

The move impacted 52 staff members, 550 homes and more than 250 creditors owed just under $18 million.

However, just a few hours later, parts of the building firm was purchased by another Victorian construction company, Mimosa Homes.

Liquidators informed customers late on Wednesday that “one of Victoria’s top 15 residential builders that has the financial backing with many years of experience in construction and business, has acquired some of the assets owned by the company, including any owned master plans, copyright materials, branding and customer database”.

Mimosa Homes confirmed that it was the company that had bought some of the intellectual property of Snowdon.

This has no impact on supporting creditors as Mimosa Homes told news.com.au it will not be absorbing any of Snowdon’s debts.

Customers were alarmed by a few additional sentences in the email they received about the acquisition, however.

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This unexpected email landed in customers’ inbox last night less than 24 hours after the company collapsed.

Customers are concerned they might be in breach of copyright if they continue with their builds.

“They [Mimosa Homes] may be in contact with you in the next seven business days to discuss your options moving forward,” it read.

“They may be able to assist with providing quotations for completion and your claims with your Domestic Building Insurer, or if your works have not commenced, may be able to assist in the completion of your works …

“Accordingly, it would be prudent to contact them to discuss any copyright and other issues that may affect your building.”

It comes just weeks after a news.com.au investigation revealed that subcontractors and suppliers hadn’t been paid for months while construction sites languished, untouched, leaving several customers in financial ruin.

Snowdon Developments was court-ordered to go into liquidation on Wednesday.

Mimosa Homes has absorbed part of Snowdon Developments.

A Mimosa Homes spokesperson told news.com.au that the company “will not be paying any debts incurred.

“We will be working with customers who have paid a deposit to offer and provide an amicable solution.

Cenk Kaid, the director of Mimosa Homes, emphasised that the company was not automatically taking on Snowdon’s jobs.

“Any Snowdon Development jobs will remain with Snowdon and be separate from Mimosa Homes and our staff,” he said.

They also would not disclose the amount of money they had spent acquiring these assets from Snowdon.

The appointed liquidator, Shane Deane of Dye & Co, Solvency and Turnaround, told news.com.au that Mimosa Homes approached him several days ago looking at the possibility of a sale.

“The offers [after a liquidation] are usually so low we’d never end up selling them,” he said.

“This one [Mimosa’s offer] was capable of providing some return.”

Mr Deane said this development was “good news” as it “puts more money in the pot” which will ultimately mean creditors can receive more of their fair share.

He added that “Homeowners having an immediate point of contact [with Mimosa], because they have all the details and can pretty much pick it [the home building project] up.”

Ultimately, however, he said it was customers’ choice about whether they wanted to go with Mimosa or choose their own builder.

550 customers have felt the sting of the collapsed company.

A total of 550 homes have been impacted by Snowdon’s collapse.

There are 252 customers who paid their deposit but never had any building work undertaken on their site.

A further 268 home buyers are in “various stages of completion”.

Among them is primary schoolteacher Mira Vose and her husband Anthony, both aged 40, who have forked out more than $30,000 so far in progress payments to Snowdon for their new home, meant to cost a little over $200,000.

Their land was titled in September 2020 and building was meant to commence in March 2021 but it wasn’t until June that the slab was put in.

Then, nine months later, in March this year, the frame finally went up — but with no roof, making them fear the whole structure will need to be redone.

“This whole thing has been a complete and utter nightmare,” Ms Vose told news.com.au.

“We are going to be out of pocket.”

Their house has had its frame built but no roof has been put on for the past four months — which means the couple are worried their frame is now ruined and they will have to repay for the whole thing.

On top of that; “Because it has been so long and prices have gone up for builds”, Ms Vose added.

Then there’s Josh Curmi and his wife Alicia, aged 29, who have so far shelled out $10,500 to Snowdon in a deposit for a three-bedroom house in Tarneit.

They’re worried what will happen to their cash with the complications from the liquidation.

“$10,500 is a big chunk of money,” Mr Curmi previously told news.com.au.

Josh Curmi and his wife Alicia are impacted customers.

Mira and Anthony Vose.

The Voses frame, soaked through with rain.

There are more than 250 creditors wanting their money back from Snowdon and 52 staff, who were terminated on the spot at the beginning of this month, are also owed their final wages and months of unpaid superannuation.

Michael Hassan’s company MD Demolitions was one of the 15 creditors taking Snowdon to the Supreme Court after waiting for more than six months for $103,000 owed to be paid back.

“There was no money coming into the account to feed the family or pay off the workers,” Mr Hassan previously told news.com.au.

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Originally published as Collapsed Snowdon Developments bought out by Victorian builder Mimosa Homes