Adelaide Designer Homes was allegedly ‘robbing Peter to pay Paul’ in company collapse

The collapse of an Adelaide designer builder which has left 20 unfinished homes and saw them allegedly using money from new jobs to pay for old, a whistleblower claims.

A man who says he was an employee of collapsed builder Adelaide Designer Homes claims they were “robbing Peter to pay Paul” by using payments from new jobs to cover debts owed on earlier work.

The debt-ridden business has left 20 homes incomplete and more than 80 creditors unsure if they will receive the money they are owed.

The former supervisor who asked not to be named was told on Thursday by the liquidator he was out of a job with no word on pay, superannuation or other entitlements.

The collapse of Adelaide Designer Homes has left 20 homes across SA incomplete. Picture 9 News,

He said it had been obvious to him for some time there was financial strain.

“They should have pulled the plug earlier, by the end they were using each claim that came in from a job to pay bills on other jobs — they were robbing Peter to pay Paul,” he said.

“They poured a slab at Brighton just six weeks ago which essentially was to keep them going, as 10 per cent of a contract value is the slab and 20 per cent is in the frame, so if you can get those done you can claim 30 per cent of what might be a $1.2m contract — but then the rest was left sitting idle.

“Tradies were not getting paid and now it has all collapsed.”

The man urged potential home builders to do their research including talking to tradies to see if they are being paid on time.

“These guys had the fancy name and glossy website but you need to find out if they really are getting the work done,” he said.

There is no suggestion of unlawful conduct on the part of the company.

A notice on the ASIC website says: “Notice is given that at a general meeting of the members of the Company held on 08 August 2024, it was resolved that the Company be wound up and that Anna Agostino be appointed liquidator(s).”

However, the Myrtle Bank-based builder’s website is still operational, stating: “Adelaide Designer Homes specialises in custom-built homes of outstanding quality, that you and your family will love and enjoy.

“Our unique approach to building means we manage all aspects of the build, from initial concept and design, through to approvals, working with local councils, and complete construction to create a home that you’ll be proud to call your own.”

It also says: “At Adelaide Designer Homes, the only thing more exceptional than our quality homes, is our service.”

The builder’s website said it prides itself on its 'outstanding quality.' Picture from Adelaide Designer Homes website.

This will be bitter reading for the dozens of Adelaide families with half-built homes and contractors out of pocket, as well as employees now out of a job and wondering about their entitlements.

The collapse is being blamed on rising cost of materials and labour including fixed price contracts entered into before the Covid upheaval but liquidator Anna Agostino from Clifton Hall is investigating whether they should have ceased trading sooner.

The previously award-winning company has been contacted for comment.