Ian Cubitt’s Classic Home Improvements in liquidation as Acrow Homes moves in
A family-owned construction company that collapsed in February has been formally placed into liquidation by creditors as another builder has stepped in to complete more than 100 projects.
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A family-owned construction company that collapsed in February has been formally placed into liquidation by creditors, with another builder stepping in to complete more than 100 projects left in limbo.
The decision was made at a reconvened second meeting of creditors of the NSW-based Ian Cubitt’s Classic Home Improvements – formerly trading as Cubitt’s Granny Flats and Home Extensions, which had been operating for 30 years.
The company specialised in granny flats and home extensions in NSW and the ACT.
Most of Cubitt’s 80 staff were stood down while about 130 projects across NSW and the ACT were affected.
At the time the company had racked up $6.8m in debt. Of its debts, $2.6m of that was owed to 77 tradies. The administrators RSM Australia said they had identified more than $1m in assets,
They also actively sought the sale of the business and received dozens of inquiries.
On Monday RSM Australia said construction firm Acrow Homes had purchased Cubitt’s business names, intellectual property, project records, and exclusive rights to
its customer list for an undisclosed amount.
Administrator and RSM Australia Partner Richard Stone said Acrow had already reached out to Cubitt’s 130 clients, whose homes had been on hold since the builder entered voluntary administration in February, advising them Acrow was ready to “restart, reinvigorate and complete” their projects.
“While this is welcome news, the Administrators understand this has been a very challenging and stressful period for everyone involved,” Mr Stone said.
“The failure of one business has a domino effect on so many people, from staff, to clients, suppliers and other stakeholders.
“Today, these impacts are being compounded by a fragile economy and businesses and
households who are doing it tough.”
Mr Stone said that the return to creditors was uncertain at this stage and would be subject to future recoveries.
In February the Cubitt family said it has called in administrators because they “suffered more than it can shoulder” because of bank lending conditions, supply prices, taxation changes, insurance prices, covid recovery and lengthy weather events.“
The family said in 2021 they decided to honour fixed price contracts and not pass on price rises to their customers, bridging the shortfall and completing projects with significant loans to the company by the owners, Ian Cubitt, Kim Cubitt and Kate Cubitt, using their personal assets,
The family said they were unable to bridge the gap entirely and the directors had to make the “devastating decision” to appoint to the parent company.
“It was a very emotional meeting. After 30 years building homes, we never thought we’d find ourselves in a position where we’d be saying goodbye to our staff, our business, and the many steadfast customers and suppliers who have supported us. It has been the toughest of days,” they said.
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Originally published as Ian Cubitt’s Classic Home Improvements in liquidation as Acrow Homes moves in
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