More sub-contractors exposed as Seachange Caloundra folds

A CONSTRUCTION company that had its licence suspended six times in seven years has gone bust, owing about $850,000 to creditors.

IRATE: Les Williams from WK Civil is leading a fight to protect sub-contractors’ payments. Picture: Brett Wortman

A CONSTRUCTION company that had its licence suspended six times in seven years has gone bust, owing about $850,000 to creditors.

Seachange Caloundra Pty Ltd was operating the Hotondo Homes Caloundra franchise and went into voluntary liquidation on August 26, leaving 115 unsecured creditors.

Hotondo Homes CEO Caroline Kennedy said the company was officially notified the following day and terminated the agreement between Hotondo Homes and Seachange Caloundra.

"All our franchisees operate as independent businesses," Ms Kennedy said.

"As soon as we were advised of the situation we took the appropriate action as franchisor.

"We have been in contact with some customers directly affected by this incident and have advised them what we know and their options, especially in regards to Home Warranty Insurance. All customers are protected by Home Warranty Insurance."

The Daily was yesterday contacted by a number of sub-contractors affected by the sudden closure of the business, eager to try to recoup lost funds.

"Lucky we got deposits off them," a creditor reflected.

Hotondo Homes moved to assure that the incident was an isolated one and that the franchisor would not be ceasing business.

However, the company was unable to address questions as to what checks were undertaken, or whether the licence suspensions had been raised with the parent company.

A look through the Seachange Caloundra licence search revealed the builder licence, whose nominee is listed as Ian Patterson Gemmell, had been suspended six times since June 26, 2008 for a number of reasons including three failures to renew the licence, failing to lodge financials and failing to comply with an audit.

The latest suspension came on August 3, before the licence was cancelled.

Queensland Building and Construction Commission interim commissioner Kellie Lowe explained the failure to renew offences, but could not provide any other information regarding Seachange Caloundra Pty Ltd's licensing issues.

"One of the most common reasons for licence suspensions is when a licensee fails to pay their licence renewal fee by the due date," Ms Lowe said.

"This occurred on three occasions with Seachange Caloundra Pty Ltd, resulting in three suspensions for this offence during the licence's history (SUSPEND - ROLL & FIN in the company licence record on QBCC website)."

Brisbane-based liquidator Glen Oldham has been appointed and he confirmed to date 115 unsecured creditors were owed about $850,000.

Subcontractors Alliance's Les Williams said it was another example of the need to protect consumers and subcontractor payments, slamming the QBCC.

The Daily was unable to contact Mr Gemmell.