Plumbfirst has been placed in voluntary administration with an urgent sale process under way
Plumbing and electrical contractor Plumbfirst has been placed in voluntary administration with WLP Restructuring seeking urgent expressions of interest for the company.
Plumbing and electrical contractor Plumbfirst has been placed in voluntary administration, with WLP Restructuring seeking urgent expressions of interest for the group, which employs about 170 staff.
Melbourne-based Plumbfirst is the third major plumbing contractor to run into trouble in the past two months, with Victoria’s largest privately-owned plumbing contractor Richstone Group also calling in voluntary administrators last month, and fellow Melbourne plumbing contractor CDC Plumbing and Drainage placed in liquidation in February, with the loss of 197 jobs.
WLP partners Alan Walker and Glenn Livingstone on Thursday were appointed as voluntary administrators of Plumbfirst and five other group entities.
“The administrators are now seeking urgent expressions of interest from suitable parties to recapitalise or purchase the group and its assets, or both,’’ WLP said in a statement.
“While that process advances, the administrators will continue trading the group with no interruption to ordinary operations expected at this stage.’’
Mr Walker said the company’s directors decided to place it in voluntary administration after rising materials costs adversely impacted its financial performance.
“The group comprises one of the largest plumbing and electrical contracting operations across southeast Australia with a well-established 170 strong workforce and customer base,’’ Mr Walker said.
“We are confident that a process to sell or recapitalise the group can move ahead quickly with the objective to maximise recoveries for creditors and minimise disruption for staff and customers.
“We are already working closely with management, employees and other stakeholders to do everything we can to continue to trade the group on a business-as-usual basis while we seek viable options to secure its future.”
The first statutory meeting of creditors will be held on Monday 24 April 2023.
Richstone Group’s administrators restructured that firm’s operations last month, securing approval for an expedited sale of the business to a related company led by common director Shannon Egglestone.
Richstone has delivered plumbing infrastructure services to high-rise apartment towers and other developments across Melbourne over its 20-year history, and is currently active on several major projects including the $12.6 billion Metro Tunnel rail project.
Meanwhile the collapse of CDC and sister company Aerolink in February left 197 staff and around 175 creditors more than $7 million out of pocket, while dozens of active projects were also affected.
The companies had previously worked on major projects across the country including the new Footscray Hospital, high-rise towers Australia 108 in Melbourne and 300 George Street in Brisbane, as well as the new Royal Adelaide Hospital and MCG’s Great Southern Stand redevelopment.
Both Richstone and CDC blamed Covid-19, higher material costs and ongoing supply chain constraints for their deteriorating finances.
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