Geelong insolvencies 2024: Construction, hospitality top list

It was a tough year for many businesses in the Geelong area, with worrying trends emerging for one industry in particular. SEE THE FULL LIST.

Top from left: Allied Therapy Services director Naomi Doody, Geelong Building Solutions director Aaron Anstis, Napona owner Will Stinton, and Joshua Finch of Finch Builders were among 163 others who had to file for insolvency in 2024.

More than 150 Geelong businesses could not pay their debts last year, new data has revealed.

From January to December 2024, 167 companies based across Geelong, the Surf Coast, and the Bellarine filed for insolvency.

The construction industry was hit the hardest, with 71 liquidator appointments made by builders, landscapers, and demolishers who could not dig themselves out of financial trouble.

One notable example was Geelong Building Solutions, which in August 2024 entered liquidation owing nearly $900,000 to creditors.

The Ocean Grove based company started in 2015 and built up to 200 new homes before it was forced to wind up.

Geelong Chamber of Commerce chief executive Jeremy Crawford said high prices and worker shortages were hurting construction businesses.

“Really low unemployment … means that there’s not a huge demand on available talent in the area to be looking for work,” he said.

“There are some issues with the cost of building and that has affected the supply chain.”

“We have had some scenarios in Geelong where developers are ready to go but have decided not to continue … that’s having a flow-on effect, particularly on smaller to mid-size organisations.”

It was no cake walk for hospitality traders either — there were 35 insolvencies among accommodation and food services businesses.

Earlier last year, popular Italian restaurant Napona was forced to close its doors after owing $270,000 to the Australian Taxation Office.

Mr Crawford said the best way for bosses to address their monetary woes was to face it head on.

“Businesses should always identify as early as possible when they can utilise assistance ... as uncomfortable as that conversation can sometimes be,” he said.

“Part of that is understanding the health of the business and the financial triggers.”

Geelong’s insolvency numbers in 2024 were similar compared to other Australian regional cities of similar sizes.

In the New South Wales region of Wollongong, which has a population of 313,909, there were 158 insolvent companies.

Further up north, in Queensland’s Sunshine Coast (342,541), there were 225 companies that were either restructured or liquidated.

Mr Crawford said a recent slew of “taxes and levies” made Victoria one of the “least competitive” states to operate in.

“We are seeing still businesses heading over to other states to try and gain an advantage.”

However, he said the future outlook for Geelong traders was very positive given the “growth opportunities” ahead.

“In terms of a place to work and the opportunities that are available, Geelong is the best positioned region in all of Australia,” Mr Crawford said.

“The current conditions are not a hyper-local issue … there are some significant benefits for businesses to operate here.”

Originally published as Geelong insolvencies 2024: Construction, hospitality top list