Norwood builder Bespoke Development expected to be wound up at Federal Court hearing

Two related home building companies have been placed in the hands of liquidators.

Jordan and Melissa Wissell pictured, with their children, at their Bespoke Development site at Seaview Downs in August. They are seeking to wind up the company. Picture: Keryn Stevens

Two related and embattled home building companies have been placed in the hands of liquidators.

The Federal Court on Wednesday, February 3, approved the winding up of Norwood firm Bespoke Development and placing it in voluntary liquidation.

It comes a day after its director Gen Xu placed his sister company Adelaide Property Development in the hands of liquidator Dominic Cantone, of Oracle Insolvency Services.

Mr Xu consented in the Federal Court to the winding up of Bespoke Development,

Creditors and customers of Bespoke Development had filed a joint court application wind up the firm, which creditors claim had ripped them off hundreds of thousands of dollars.

The liquidation will now pave the way for customers to lodge insurance claims.

The paper last year revealed that customers of the Bespoke Developments, on Fullarton Rd, had paid nearly $800,000 for projects that remain unfinished.

Among those were Melissa and Jordan Wissell who accused the firm in August 2020 of leaving them $170,000 out of pocket.

The Wissells had handed over money to the firm but all was built on their Seaview Downs block was a slab and timber frame.

Bespoke Developments Jayce Richardson said he tried to cut a deal with creditors.

Investor Jin Lim, who last year accused Bespoke Development of abandoning a development site at Highbury despite taking $627,550 of a $697,500 project cost, has also joined the court action along with Keith Timber Group and Simmonds Heating and Cooling.

Mark Simmonds told The Advertiser on Monday, February 1, that companies affiliated with Bespoke – including Adelaide Property Development – still owed his Somerton Park airconditioning company $150,000.

Former Bespoke Development director Jayce Richardson had last year defended his companies’ conduct.

The companies have not traded since the COVID pandemic hit in March.

Consumer and Business Services commissioner Dini Soulio suspended Bespoke Development’s licence on September 25 and cancelled Adelaide Property Development’s licence on January 22.

Mr Richardson resigned as a director of both companies in September as condition of employment with a new company, he said speaking through turnaround specialist Eddie Griffith of ReGroup Solutions.

He said he had been involved with negotiations with creditors via business advisers Hall Chadwick but those talks failed.

Co director Geng Xu told The Advertiser he expected the court would proceed with the winding up application “ and I will be the one losing everything”.

Mr Griffith said there is a “high chance” that Mr Xu and Mr Richardson will face personal bankruptcy.