Melbourne builder facing possible liquidation as court documents show 13 creditors owed $1 million

The company’s phone lines are disconnected while its social media pages no longer exist, as its fate will be decided in less than 48 hours.

EXCLUSIVE

A building company has closed down its social media accounts and switched off its phone lines just days before a definitive court case could order it into liquidation.

Como Homes is a residential builder based in Dandenong in Melbourne’s southeast which has been a registered business since 2017, according to the corporate regulator.

On its website – which still remains live – the building company boasts its customers are “the envy of the street” and implores anyone interested to contact them if they are “ready to discuss your dreams”.

But in reality this doesn’t seem to be the case.

According to documents lodged with the Victorian Supreme Court and obtained by news.com.au, 13 creditors are chasing it for debts totalling nearly $1 million.

The earliest debt Como Homes owes contractors dates back to July last year.

For the past six months, court proceedings have been underway, with this Wednesday set for the final decision, where it could be ordered into liquidation.

Como claimed its homes made occupiers the “envy” of their street.

Since January, Como Homes has had a daunting legal battle hanging over its head.

On January 24, Flooring Xtra began winding up proceedings against the embattled construction firm after it failed to comply with a statutory demand for payment.

The flooring supplier provided invoices which showed from July and August last year, Como Homes racked up debts of $141,000 in those two months but never paid.

Flooring Xtra suspended work with the company in August and several months later lodged documents with the Supreme Court.

This lodgement sparked a pile-on for Como Homes.

A further 12 other applicants joined the court proceedings as supporting creditors in the following months.

Judicial Registrar Gitsham is overseeing the case and is set to make a decision on July 12 after multiple delays and adjournments.

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The company’s Instagram account is no longer active.

The Commissioner of State Revenue was the first supporting creditor to join the case after Flooring Xtra, demanding a tax debt of $44,000.

The majority of companies that joined the case are trade creditors.

AAA Advanced Truss (Dandenong) is demanding payments of $130,000 while its sister company AAA Advanced Windows lodged forms of a $278,000 debt.

Then there’s Liquid Force Plumbing claiming it is owed $67,000 and Austral Bricks with a $70,000 hole in its balance books.

Other tradie businesses are owed smaller amounts, such as Crystal Interior Concepts Pty Ltd, allegedly owed $14,500, Sitetech Solutions owed $14,888, and Waco Kwikform Limited, coming in at $9600.

Cornell Developments, a concreting and earthworks company, is owed an unknown amount, but still registered as a petitioning creditor.

Bunnings Warehouse was also one of the creditors for $9000 that had not been paid back but pulled out for unknown reasons in May.

Two customers also joined the case, for debts of $5250 and $185,000 respectively.

In total, Como Homes appears to currently owe $957,000 to these 12 creditors, according to the court documents.

News.com.au contacted Como Homes and its lawyers for comment.

When news.com.au rang the company, an automated messaged informed the caller that “the number you have called is not connected”.

Como Homes has been involved in these court proceedings since January.

Customers have also added themselves to the court proceedings.

In an unrelated matter in July last year, news.com.au revealed a similar court case against Snowdon Developments, where multiple creditors took the firm to court for debts totalling $2.5 million.

Just a few days before its final court date, it appointed administrators. The Supreme Court still ordered the business to go into liquidation.

Then there was Australia’s 13th largest home builder Porter Davis, which closed down its offices, phone lines, build sites and just 24 hours before it officially went into liquidation.

It comes as the entire building industry is in crisis because of supply chain disruptions, skilled labour shortages, skyrocketing costs of materials and logistics, locked-in price contracts and extreme weather events.

So far this year, more than a dozen builders have collapsed.

Less than two weeks ago, Perth-based building company Flexible Homes bit the dust.

Last month, news.com.au also reported that Melbourne construction firm Red Bluff Homes had gone into liquidation amid a dispute with a customer over suddenly cancelling the contract.

Last month, another Western Australian firm, the Slatter Group, also went into liquidation, after being in business for 20 years.

Interface Constructions Victoria, which specialised in childcare and education projects, also appointed external administrators in May.

PBS Building, a multimillion-dollar firm which did a mix of commercial and residential projects across Queensland, NSW and the ACT, officially collapsed, leaving 180 staff and 80 projects up in the air.

Earlier this year, three prominent building companies collapsed a day apart from each other, with NSW apartment developer EQ Constructions going bust owing up to $50 million, then Perth building company called Hamlen Homes going into administration with $1.4 million reportedly owed to creditors and the next day Melbourne-based residential builder Hallbury Homes went into voluntary administration.

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