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JML Developments’ directors make no apology for clients and customers stung by companies’ $2 million collapse

The father-and-son team behind failed two building companies have refused to publicly apologise to clients and contractors owed millions from their collapse.

This house at Cedar Ave, Campbelltown, is among houses left unfinished with the collapse of JML Home Constructions, trading as GJ Gardner Homes Onkaparinga, and JML Developments. The companies owe more than $2 million.
This house at Cedar Ave, Campbelltown, is among houses left unfinished with the collapse of JML Home Constructions, trading as GJ Gardner Homes Onkaparinga, and JML Developments. The companies owe more than $2 million.

Customers and contractors left out of pocket from the collapse of two building companies have been denied any apology by their directors who instead extended their “best wishes” for the future.

Father-and-son-operated JML Developments (SA) and JML Home Constructions have been placed in voluntary liquidation owing more than $2 million to dozens of creditors, according to reports lodged with ASIC.

Directors Mark and Jamie Lees have failed to return calls and emails from The Advertiser seeking answers to the financial difficulties that led to them putting their business into voluntary administration on March 12.

In a post on the JML Developments Facebook page, addressed to its “valued clients, contractors and friends”, the Lees said they understood the “difficult situation” they were in and the stress it “may” put on their businesses and families.

“If there is any consolation, we wish you all the best for your future and hope that you are all abundant and successful in your future endeavours,” they wrote in the brief message.

JML Home Constructions traded as GJ Gardner Homes Onkaparinga — a franchise of the national home builder, which last week terminated the contract over a “breach of contract”.

Chris Johnson, director of Croydon flooring company Staffords Warehouse, said the post was a “slap in the face”.

“It probably made it (the pain) worse for everyone,” Mr Johnson, whose company was owed just over $40,000, said.

“I’ve got to now come up with $40,000 to cover my losses.”

He said he had to sack two employees to reduce his costs, but they were able to find new work.

He said he also lost $25,000 last year working for failed builder Build 29.

The closed offices of JML Home Constructions, trading as GJ ardner Homes Onkaparinga.
The closed offices of JML Home Constructions, trading as GJ ardner Homes Onkaparinga.

Mr Johnson said it was important contractors affected by the companies’ failure helped each other in securing new work or warning each other of builders who don’t pay on time.

M & M Render director Michael Harfield said the JML companies owed his Morphett Vale company $50,000 and that he had to sack two employees to stem his losses.

“They (the Lees) are probably going to put a lot of people out of business,” he said.

“There’s an electrician owed about $50,000 … he has had to take out a loan to cover his own debts, it’s not good.”

Clifton Hall’s Daniel Lopresti, who is managing the liquidation of JML Home Constructions and JML Developments, filed a legally required declaration of independence with ASIC on Thursday.

In the document he said that had met with the directors and their lawyer on February 28, 2018. But he contacted The Advertiser to advise that he had made a mistake and that the meeting was February 28, 2019.

A first creditors’ meeting is scheduled for April 2 at Clifton Hall’s King William St office.

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Original URL: https://www.adelaidenow.com.au/messenger/jml-developments-directors-make-no-apology-for-clients-and-customers-stung-by-companies-2-million-collapse/news-story/7d788398454d1e22c0ce715c4e0b1a95