Family-owned Logan kitchen maker files for voluntary liquidation, 30 staff laid off

A South East Queensland kitchen manufacturer in business for 50 years has made the heartbreaking decision to lay off its 30 workers and go into voluntary liquidation.

A world-class Logan manufacturer of kitchens, wardrobes and furniture has gone into voluntary liquidation and laid off all its workers.

Birbilis Bros Pty Ltd broke the sad news to its 30 staff on Friday. One employee had worked there for 41 years.

The award-winning business, founded in 1969, was based in Springwood before moving to a larger, 10,000 sqm factory at Crestmead in 1994.

At one stage it was supplying 120 kitchens a week to Kitchen Connections and other retailers.

Company director Terry Birbilis declined to comment, but submitted a statement of claim to the Supreme Court.

Aerial view of the Magnesium Drive, Crestmead factory site.

It was understood cash flow difficulties began in 2019 when it signed a supply contract with Bunnings Group Limited.

Birbilis invested heavily in extra staff, retooling and other expenses so it could supply kitchens and joinery products to the hardware giant’s trade division.

Birbilis said in court documents that Bunnings agreed to buy a minimum of about $5 million a year in products but bought substantially less, resulting in them taking court action in June, 2021.

The court case is still ongoing, with no resolution following mediation.

Birbilis made a range of domestic and industrial furnishings.

Bunnings general manager (commercial) Rod Caust said Bunnings was defending the claims.

“We have made attempts to resolve the dispute, but unfortunately these have not been successful,’’ Mr Caust said.

“As the matter is before the courts, we are unable to provide further comment at this time.’’

Some of Birbilis' many products.

Nick Kombis from liquidators Vincents, who was appointed on Friday, said it was unlikely the company would be able to return to its Logan factory but the directors still hoped to regain control of the business.

“They have submitted a proposal for a deed of company arrangement,’’ Mr Kombis said.

“I’m liaising with stakeholders and creditors. The directors are hoping to salvage the company, but at the moment it has ceased trading.’’