Busby Homes collapses in mysterious circumstances, with liquidators appointed
Scores of homeowners are owed money and 10 houses have been left unfinished, after a luxury home builder in Melbourne’s east was placed in the hands of liquidators.
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More than 100 people are owed money and 10 houses are unfinished following the collapse of luxury home builder Busby Homes.
The family-owned business, which had its head office in Heathmont and showrooms in Bayswater North and Fairfield, went under on January 23.
Liquidator Glenn Crisp, from insolvency and business recovery practice Jirsch Sutherland, told Maroondah Leader the company had 114 creditors owed money.
Mr Crisp also said 10 homes were unfinished, four homes were in the final stages of handover and there was five contracts for projects yet to start.
Have you been affected by Busby Homes’ collapse? Email kiel.egging@news.com.au
He said the business, which was established in 2004 and had 13 staff, blamed “the downturn in the custom built property market” for its demise.
“The director and shareholders placed the company into liquidation on January 23, 2020 having realised that the cashflow of the business could not support the level of fixed and variable costs to run the operations,” Mr Crisp said.
“The director has explained that a number of issues contributed to the company being placed into liquidation including a decrease in the volume of sales, clients being unable to secure finance for the construction of their homes, and the downturn in the custom built property market.”
Mr Crisp said he was looking to identify and appoint builders to finish any outstanding jobs for clients.
Meanwhile, a former client of the collapsed builder is bracing for a $50,000 repair bill, claiming her said her house was left uninhabitable and filled with “disgusting” mould.
Rebecca, who did not want to use her surname, said she was left with “a long list of defects” after Busby built her home in Cockatoo in 2010 including leaks, low ceilings and no insulation in part of the roof.
She said mould was also later found inside bedroom and laundry walls, and the family moved out of the house again in September.
“A guy was going to contact us when he got back from holidays and organise a site visit, and next thing we know they are under liquidation,” she said.
“We’re probably going to have to spend $50,000 to get the walls fixed and to re-do the living room floor.”
“Their behaviour is disgusting … the whole way through it was an argument and it was so hard to get anything fixed.”
Rebecca said the situation had forced her to move in with family in Narre Warren South, where she is caring for two children.
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Busby Homes says on its website it had more than 20 years’ experience in the building industry and made “liveable, enduring and bespoke homes”.
The company also said it was “dedicated to delivering real personal service, quality workmanship and innovation and design”.
Mr Crisp said he was directing clients to the Victorian Managed Insurance Authority to submit claims to have their homes completed, along with rectification of any defects that could arise.