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Melbourne home builder Red Bluff Homes goes bust amid complaints

Red Bluff Homes has collapsed into liquidation following a string of complaints, leaving dozens of Victorian families with unfinished houses.

Collapse of residential construction giant causes concern

A Melbourne home builder has collapsed into liquidation following a string of complaints from disgruntled customers and tradies.

Red Bluff Homes, which built residential and larger multi-dwelling townhouse developments, called in liquidators on Thursday.

The latest collapse to hit Victoria’s construction sector comes hard on the heels of major busts including Porter Davis, which left about 1500 homes unfinished across the state.

Insolvency specialist firm PKF Melbourne liquidators Petr Vrsecky and Glenn Franklin are now in charge of the failed Keysborough builder.

A spokesman told the Herald Sun that 21 projects – at different stages of completion – had been affected.

“We are presently reviewing the company’s operations, activities and financial position and this includes an assessment of all houses under construction to determine their present status,” he said.

“We’re also investigating the possibility of other builders assisting with completion of projects.”

The spokesman said PKF were contacting affected customers on Friday.

Mark Anthony’s house in Mitcham was impacted by the Porter Davis collapse. Picture: Ian Currie
Mark Anthony’s house in Mitcham was impacted by the Porter Davis collapse. Picture: Ian Currie

It comes as Red Bluff Homes was fighting at least one action in the Victorian Civil and Administrative Tribunal from a Melbourne mother who claimed the company had not returned her deposit after cancelling her home contract.

Other documents lodged with ASIC showed building materials suppliers Dahlsens, PGH Bricks and Pavers, Bristile Roofing and Brickworks had security interests registered against Red Bluff assets.

The company’s website said the builder had more than 35 years experience in building homes in Melbourne and across Victoria.

“At Red Bluff Homes, we take the time to listen and advise so your journey through building your new home is a stress free, enjoyable and rewarding experience,” the site read.

Recent online reviews for Red Bluff were overwhelmingly negative with one complaining: “Nothing more than a pack of thieves. Ripping off people for their deposits and doing shady deals. Avoid wherever possible.”

Another, posted five days ago, was purportedly from a tradie who was owed money.

“We completed a job for Red Bluff Homes and it has been a nightmare getting my invoice paid,” it read.

“Now I have to waste my time taking this to a debt collector or small claims.”

In May, a Melbourne mum complained she had been “brought to tears” by Red Bluff.

She said the business had terminated a contract to build her family’s dream home but had not returned a $23,675 deposit.

The mum had signed a contract with Red Bluff in March last year to build a house in Diamond Creek.

Red Bluff Homes was contacted for comment.

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Original URL: https://www.heraldsun.com.au/news/victoria/melbourne-home-builder-red-bluff-homes-goes-bust-amid-complaints/news-story/5f45b0d8f777b1f5759d180454b79c3e