Felmeri Group’s debt revealed: Collapsed building company owes almost $10m to creditors

The whopping debt that sunk building company Felmeri Group has been revealed – and it is much more than first feared.

Creditors of collapsed Adelaide building company Felmeri Group have been left chasing close to $10m in unpaid debts.

Among those owed money include $2.5m to about 130 tradies and contractors and $2.8m for three major commercial builds, while secured creditor ANZ ($420,000) and the Australian Taxation Office ($650,000) are also chasing debts, administrator Leigh Prior from Agile Business Advisory confirmed to The Advertiser.

It was initially believed the company’s debts were closer to $5m.

The extent of the business’s dire financial situation was revealed at a creditors’ meeting held in Adelaide on Wednesday.

Felmeri Group Head office, 32 King William Rd, Wayville/ Image/Russell Millard Photography

Unfinished homes in an O’Halloran Hill estate. Picture: Keryn Stevens

The number of affected customers has also blown out with construction yet to begin or incomplete on about 120 homes, with only about 50 of those insured, 7News reports.

Felmeri, which traded as Felmeri Homes and Felmbuilt Commercial, fell into administration earlier this month following a string of complaints around poor workmanship and lengthy delays that prompted an investigation by Consumer and Business Services.

The business officially ceased trading last Thursday with all 21 workers at the family-owned construction company made redundant. They were formally notified less than a week after the business entered into voluntary administration.

Its Wayville headquarters was reportedly left abandoned with phone lines disconnected, and no trace of any employees on the premises.

A report by administrator Leigh Prior from Agile Business Advisory is due by June 19, with a second creditors’ meeting to be held a week later.

The company was established by father-son duo, both named Frank Felmeri, in 2006. Mr Felmeri was contacted for comment.

Originally published as Felmeri Group’s debt revealed: Collapsed building company owes almost $10m to creditors