Safa Scaffolding goes into liquidation and owes up to $500,000

After trading for more than 15 years a construction services company will be wound up blaming cash flow issues and bad debts.

A Gold Coast-based company that billed itself as a leading provider of scaffolding and building access solutions will be wound up, potentially owing about $500,000 to creditors.

Safa Scaffolding Pty Ltd, which was based in Currumbin, put itself into voluntary administration in early June after one of Australia’s largest scaffolding companies Acrow Formwork and Construction Services applied to the Supreme Court in May to wind it up.

According to ASIC documents, the company owes $497,958 with the Australian Taxation Office owed $263,388.13 and related parties and unsecured creditors owed most of the balance.

At a creditors meeting they resolved to appoint administrator Terry Grant Van Der Velde from SV Partners as liquidator.

Trading as SAFA SCAFF, the company worked across the residential, commercial and industrial sectors throughout southeast Queensland and northern NSW for more than 15 years.

They offered a full design and estimating service and was fully certified to comply with the Australian and New Zealand safety standards.

Some of its projects include Aura Apartments at Varsity Lakes on the Gold Coast, the Gold Coast Indy and the company has worked with many builders including Fraze Developments, Gavin Boyle Construction and Trac Developments.

Safa Scaffolding has gone into liquidation.

In company documents Daniel Marcus Wundke and Luke Morten Wundke were listed as co-directors. They have been directors since 2007 and 2008 respectively.

Daniel Wundke and Joanne Burrows are joint shareholders in the company along with Wilderness Holdings which operates from the same West Australian address as Luke Wundke.

The company acted as a Trustee of the DM Wundke Trust and LM Wundke Trust.

When contacted by The Courier-Mail Daniel Wundke hung up the phone.

In a report to ASIC earlier this month, Mr Van Der Velde said Safa Scaffolding directors advised that the main reason for the company’s financial difficulties were due to consistent cash flow issues, difficulties in recovering debtor amounts resulting in bad debts and persistent issues with alleged employee misconduct.

Mr Van Der Velde agreed but cited other reasons including poor financial controls, inability to pay debts when they fell due and poor strategic management.

He said the business also entered into a contract of sale on September 1, last year for the purchase of its scaffolding hire and supply business by GC Scaff Hire Pty Ltd for $280,000 which settled 14 days later.

“I have been advised by the director that the consideration of the sale was GC Scaff taking over responsibility of the business loan,” Mr Van De Velde said.

“In the event a liquidator is appointed they would most likely conduct and assessment of whether the business sale was for commercial value.”