Modco Residential owner Cynthia Lu sells luxurious items on Facebook before company collapse
The glamorous owner of failed building company Modco sold some of her luxurious items online to make some extra cash.
The owner of failed boutique builder Modco Residential tried to sell off her designer goods online just a few months before her company collapsed.
Perth entrepreneur Cynthia Lu took to Facebook Marketplace in April in an attempt to sell a number of her luxurious goods, three months before her business failed.
The items that remain unsold include a used pair of Valentino stilettos, a gold coffee table and a baby bouncer.
Ms Lu started Modco Residential with her now-husband Yusuf Khan in 2020, with the promise of 20 week builds for all clients.
But the WA company entered into administration on Monday.
The drastic decision comes as allegations of unpaid subcontractors, inactivity on projects and premature demands for progress payments surround the troubled company.
The company is estimated to owe as much as $4 million to its 50 creditors.
It seems Ms Lu was doing her bit to make some extra money by trying to sell her designer goods online but at a discounted rate, having slashed her prices after no bidders were interested.
Those items included a “stunning designer gold frame coffee table”, reduced to $685 after nobody paid the $900 price tag it was originally listed for.
Ms Lu attempted to sell a pair of scuffed-up Valentino high heels, retailing at $1,100, for $880 in April, which remain unsold.
“Worn once, is too small,” she wrote.
Ms Lu, who has a baby, also attempted to get rid of items she didn’t use, including a toilet training seat that wasn’t used due to a bathroom renovation and a “brand new” baby bouncer listed for $280 after her daughter “didn’t like it”.
The glamour couple set up their business during the pandemic and building boom in 2020.
Perth-based firm GTS Advisory was announced as the administrator of Modco Residential on Monday.
The company’s director Damien Clancy has apologised for the company not being able to meet its commitments.
“Despite our efforts to overcome adversities expected in building a growing business, the rapid and unforeseen external challenges ranging from unprecedented industry challenges, perpetuated by a series of controversial articles that created distrust among stakeholders became an insurmountable challenge,” Mr Clancy said.
“What initially started as a nationwide industry challenge of increased costs of materials and labour and shortage of skilled trade forcing many builders into administration in the past financial year, was then exacerbated by the intense media scrutiny targeting Modco Residential creating distrust among our trades, vendors, staff, shareholders, clients and the industry insurer QBE.
“This caused significant strain on business operations and made it exceptionally challenging for us to acquire skilled tradespeople, retain staff and continue our operations.”
Building and Energy executive director Saj Abdoolakhan has urged those who have contracts and HII policies with the company to contact QBE to discuss arrangements.
“This enables homeowners to begin the process of engaging another registered builder to complete the work or to pursue other remedies,” Mr Abdoolakhan said
The influencer couple also jointly operates The Library Nightclub in Perth, which they acquired for $4.6 million in 2017.
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