Commercial concrete business Formwork Plus goes into liquidation, owing $620k

Another building industry business has gone bust, with a commercial concrete business in Moolap entering liquidation.

Formwork Plus in Moolap. Picture: Supplied

A Geelong concreter who claims to have contributed $50m to the local economy has gone into liquidation.

Commercial concrete business Formwork Plus, which operated from 37 Denbigh St in Moolap and had eight full-time employees, appointed Kennedy Ryan Advisory as liquidator earlier this month.

The company owes almost $620,000 to creditors, with the vast majority to unsecured creditors, Australian Security and Investment Commission (ASIC) documents reveal.

Sole director Mark Ruseler said the business encountered financial difficulties in the first half of last year after commencing work on a water sewerage treatment plant job in job in Warrnambool.

“That job proved a little more difficult than we anticipated and as a result we have had to take the difficult position to put the company into liquidation” Mr Ruseler said.

Mark Ruseler is the director of Formwork Plus. Picture: Supplied

“The company we were originally contracted with (in Warrnambool) actually went into liquidation as well.

“There was a term in their contract which meant they had an extra million in costs they couldn’t recover from the builder.

“They (the builder) added some additional elements and the contract we had with the first customer was payment in seven day terms and the contract with the builder ended up being 30 day terms from the end of the month, so that instantly put us in a cash flow bind.”

Mr Ruseler said the original company Formwork was contracted to in Warrnambool was supportive in making payments to his employees.

“The project was in a loss making situation and we just didn’t have the resources to cover those losses,” he said.

“With this particular project, our client has been extremely supportive.

“They have taken over the employees who are working on that project.

“The project is near completion and probably has another four or five weeks to go, so they’ve taken over the payment of wages and they have also paid entitlements and all that sort of thing.

“One of my main focuses was to make sure whatever effect on the employees was minimal.”

Mr Ruseler said his experience with his now-closed business had been a “bit of a rollercoaster”.

“If you like a challenge it’s a good business to be in,” he said.

Mr Ruseler said Formwork Plus had contributed about $50m to the local economy.

Some of the projects Formwork contributed to Geelong include GMHBA Stadium, Vue apartments and the Geelong College Junior School.

Originally published as Commercial concrete business Formwork Plus goes into liquidation, owing $620k