Future of 13 franchisees uncertain as David Reid Homes Australasia goes into liquidation
A high-end South East Queensland national residential building franchisor has collapsed into liquidation owing $1.19m to creditors and leaving franchisees across Australia in limbo.
A high-end South East Queensland national residential building franchisor has gone into liquidation with the future uncertain for up to 13 of its franchisees across the country.
David Reid Homes Australasia, which operated out an office at Loganholme, collapsed last week.
The company is the national franchisor for David Reid Homes which specialises in the construction of award-winning high-end, individually designed residences.
Liquidator Jirsch Sutherland partner Chris Baskerville says according to documents lodged with the Australian Securities and Investments Commission, the head franchisor has $260,000 in total assets and about $1.19m owned to creditors.
The largest secured creditor is New Zealand-based Tugela Holdings Limited.
“It’s very early days but we have become the liquidator of the head franchisor entity. They have 12 or 13 franchisees and about three employees,” Baskerville says.
“Because it’s in liquidation we’re going to have to work out how this impacts on the franchisees. I think this is the biggest hurdle we have to work around because these franchisees would be using the intellectual property and design of the franchisor.”
The franchisees network which spans Queensland, NSW, Victoria, ACT and South Australia remains in operation.
According to an ASIC search Kenneth Beissel is the director of the multi award-winning company. He did not return messages left by Citybeat.
In July 2021 his family company secured full ownership of David Reid Homes Australasia after buying out the New Zealand based majority shareholders.
As part of the buyout, the Beissel family acquired the worldwide rights for the David Reid Homes IP.
Baskerville says initial investigations for the reasons behind the collapse pointed to declining market demand for custom, high-end home builds; outdated internal systems and operational processes; weak debtor recovery procedures and insufficient overarching management strategy.
“Construction and Hospitality industries still remain the highest impacted industries for corporate failure this year,” he says.
Legal move
There’s plenty of excitement at HopgoodGanim Lawyers with the move to its plush new offices in the Brisbane CBD’s the newest premium tower arriving on Monday.
From December 1, the firm will start moving its 250-strong team from Waterfront Place into the Charter Hall/Investa developed $800m tower at 360 Queen St.
Luke Mountford, managing partner at HopgoodGanim Lawyers, says their new home is the future of work.
“It’s open, collaborative, and purpose-built to support the wellbeing of our people and the delivery of exceptional services to our clients,” he says.
“We’re proud to offer our team a workplace that promotes flexibility, connection, and
sustainability.”
The tower was designed by Blight Rayner Architecture and will also offer premium end-of-trip facilities, a wellness centre, and refreshing outdoor terraces to support a balanced, dynamic workplace for its residents.
HopgoodGanim was one of the first tenants to pre-commit to the premium site in April 2022, alongside BDO Australia.
Together, they will occupy about one-third of the office tower.
The lawyers are the first tenant to move into the tower after 23 years at Waterfront Place.
“This move represents more than just a change of address, it’s a commitment to creating an
environment where our people and our clients can thrive,” Mountford says.
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Originally published as Future of 13 franchisees uncertain as David Reid Homes Australasia goes into liquidation
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