Harmac Group reveals fate of Geelong builds

The future of Geelong homes being built by a construction company that recently entered voluntary administration has been revealed.

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Several Geelong homes under construction by an embattled builder will be completed, the company has revealed.

The Harmac Group yesterday announced it had entered voluntary administration, with liquidators Cor Cordis appointed to restructure the business.

But the company, which has 11 homes under construction in the Geelong area, reassured customers it would “complete and handover” properties that were close to completion during its administration period.

It’s not known how many local homes have been earmarked as close to completion.

“We understand this is disappointing news for our customers, but want them – and our

trades, suppliers and other stakeholders – to know Harmac Homes has not collapsed and is

not in liquidation,” a spokeswoman said.

“Our intention is to work closely with the administrators on a plan to get the business onto a stronger footing and to get customers’ homes built.”

The move was attributed to the rising costs of labour and materials, as well as “unprecedented pressure” on the construction sector.

“Given these economic challenges, we had no choice but to enter voluntary administration to

restructure so we can put the business on a stronger financial footing,” she said.

It’s understood 23 people have been made redundant across the whole business, with 16 employees being retained. Harmac has display homes in Leopold.

A letter to customers revealed the move was a “pause, not a stop” in the company’s progress.

“We will need to down tools on all of our builds for the next five weeks as the administration takes place,” it read.

“This is a pause, not a stop, as our objective with the administration is to make some important changes to the business and emerge in a stronger position.”

Liquidators Cor Cordis said in a statement they would provide “regular” updates to customers and suppliers.

“We’ve commenced an urgent review of the Harmac Group’s financial position and are working with parties to develop a proposal to restructure the business,” the statement reads.

“We’ve set up an email address for customers, employees, and creditors.”

The Harmac Group is one of a number of construction companies that have fallen on hard times since the beginning of the Covid-19 pandemic.

In March, hundreds of Victorians were impacted when construction company Porter David collapsed.

Last year Geelong-based Waterford Homes entered liquidation after it was revealed creditors were owed more than $600,000.

Originally published as Harmac Group reveals fate of Geelong builds