Clarke Homes on The Central Coast placed in administration owing creditors millions of dollars
A large-scale NSW home builder has entered administration owing millions of dollars to creditors with a number of unfinished projects set to remain incomplete.
NSW
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A large-scale Central Coast construction company has collapsed into administration, leaving creditors millions of dollars out of pocket and homeowners stranded with unfinished projects.
Gorokan-based Clarke Homes, formerly known as Hotondo Homes, was recently placed in administration, with a meeting of creditors held on Wednesday.
Jason Porter and Joshua-Lee Robb of SV Partners have been appointed as administrators.
According to Australian Securities and Investments Commission (ASIC) documents, the business was first registered in March 2017 and lists Jonathan Allan Clarke as the sole director.
Documents reveal the company owes employees wages and salaries, annual leave, personal leave, and superannuation.
Clarke Homes owes more than 100 creditors in excess of $3.1 million, with one local supplier describing the loss of tens of thousands of dollars to their small business as devastating.
The business, which did not want to be named, said it was unlikely to recover the $60,000 it is owed.
“It’s hurting us a lot — we’re now struggling to pay our suppliers.
“We’re just trying to see if we can recoup some of the money so we can keep going. We’ve been busting our arses to stay afloat because, with the cost of living, many people are not spending.
“It’s a hard lesson learned, but it’s a lesson learned.”
Mr Robb said the business was placed into voluntary administration due to its inability to pay outstanding debts.
“The director advised that price increases on materials and labour had a direct impact on the ability to complete fixed-price contracts.
“Unfortunately, there were a number of incomplete jobs at the time of our appointment. We have written to the affected homeowners and are assisting them during this difficult time,” he said.
A spokesman for Building Commission NSW said the regulator had received four complaints about Clarke Homes relating to various building issues.
“The Commission has provided advice to a number of these individuals about their rights when pursuing their matters in relation to Clarke Homes Pty Ltd.
“The Commission is also currently assessing one of these complaints for potential further regulatory action.”
Alesha McNamara, her husband, and their five-month-old son live in San Remo and spent just under $400,000 on what was meant to be their dream home.
They started construction in June 2022 with Hotondo Homes before the business rebranded as Clarke Homes and have been living in their home for just under a year.
“Along the way, quite a few tradespeople told us they weren’t getting paid,” Ms McNamara said.
“Every trade we spoke to was owed money. Through the build process, we had different tradesmen start and finish jobs.
“We’re just lucky we got a house in the end.”
Ms McNamara estimated the defects in her home to be worth tens of thousands of dollars.
“We have holes in our ceilings, cupboards … there are hundreds of things — lots of issues.
“At the moment, because I’m on maternity leave, we definitely don’t have the money to fix these problems.
“It’s definitely cost us a whole lot more than what paying for a different builder might have,” she said.
Mr Robb said the business ceased trading upon their appointment, and it was unlikely there would be a proposal for a Deed of Company Arrangement.
“Accordingly, we are proceeding with the administration in the usual course and will report further to creditors within the coming week,” he said.
“Homeowners with defects will need to engage another builder to complete rectification work. They will then be able to claim as an unsecured creditor in the administration.”
The Commission encouraged homeowners affected by Clarke Homes Pty Ltd to contact 13 27 00 for assistance, support, or to lodge a complaint.
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Originally published as Clarke Homes on The Central Coast placed in administration owing creditors millions of dollars
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