Ultimate Kitchens & Bathrooms collapses into liquidation amid Consumer Affairs Victoria warning

Ultimate Kitchens & Bathrooms has left behind half-finished projects and out-of-pocket tradies after collapsing into liquidation.

A Hawthorn-based home renovation company specialising in kitchen and bathroom makeovers has collapsed, leaving behind a slew of customers with half-finished projects and tradies owed money.

Ultimate Kitchens & Bathrooms, which delivered kitchen and bathroom renovations from design to completion, entered liquidation on October 31.

The collapse of the firm came as Consumer Affairs Victoria issued a public warning about the business, saying it had received an “influx” of complaints from upset customers.

The Herald Sun understands Ultimate Kitchens may have taken as much as $2.5m in deposits from customers for projects that either have not started or been finished.

The business, owned by Jeffrey Richards, is also believed to have collapsed owing tradies and suppliers about $2m.

Ultimate Kitchens & Bathrooms entered liquidation on October 31. Picture: Supplied

In a letter sent out to creditors on Tuesday, prepared by liquidator Stephen Michell, the company had 52 projects currently under construction. A further 43 households had paid deposits for renovations that have not commenced.

The document as seen by the Herald Sun, blames the company’s failure on Covid lockdowns.

“The company experienced Covid lockdowns for approximately 18 months, which subsequently led to lost trade suppliers, supply chain issues for materials and price rises for materials and labour,” it read.

“According to Mr Richards, the above factors led to a reduction in revenue and sales, however, the company’s costs remained the same, resulting in cash flow issues for the company.”

It also says the company incurred “significant costs” associated with the establishment and fit-out of their Essendon showroom – upwards of $350,000.

One creditor who is owed more than $100,000 told the Herald Sun many customers left with unfinished renovations “don’t have the money to go elsewhere”.

“Sparkies are angry and upset customers aren’t insured – they’re not getting anything out of the collapse,” he said.

“I’m also not hopeful I will get my money back.”

The business is also believed to have collapsed owing tradies and suppliers about $2m. Picture: Supplied

Recent online reviews for the business are overwhelmingly negative with one complaining their “dream for a new kitchen has become a nightmare”.

“We have a half-finished kitchen renovation,” the reviewer said.

“Not one person in the entire company has had the decency to follow up, try to help and let us know what’s going on. We are still living out of our garage three months later with a half-finished kitchen.”

Another customer said they had “endured hell” chasing up unfinished work since October last year.

“This has been the most stressful situation of our lives and affected us and our children,” the review said.

“They (Ultimate Kitchens) have consistently lied, including about our cabinetry having been made – it never started as they did not pay the supplier.”

Consumer Affairs Victoria director Nicole Rich said the agency had received multiple complaints of Ultimate Kitchens taking payments for work but failing to carry it out and failing to respond to customer inquiries.

“Given the number and the serious nature of the issues raised, Rich is urging consumers to be cautious when dealing with Ultimate Kitchens & Bathrooms,” Ms Rich said in a warning issued on November 1.

Insolvency specialist PCI Partners is handling the Ultimate Kitchens liquidation.

Both PCI and Ultimate Kitchens were contacted for comment by the Herald Sun.