Bob Day to resign from parliament after company collapse

The Family First senator is “devastated” as his home-building empire halts all construction work.

Mr Day blamed the collapse on the failure of a developer from the Phillipines. Picture: Kelly Barnes/The Australian

Family First senator Bob Day says he will resign from parliament following the collapse of his Home Australia house-building empire.

Senator Day said Home Australia and its subsidiaries in South Australia, Western Australia, Victoria and New South Wales would be liquidated by McGrathNicol.

“As I have always agreed to sign personal guarantees to creditors, this closure also has serious implications for me and my family,” he said.

“Creditor liabilities greatly exceed our assets so we will also lose our family home.

“As for my role as a Senator, I will of course resign.”

He said he was “devastated by what has happened and will do whatever I can now to assist those affected by this closure”.

“I am incredibly sorry for the pain, stress and suffering I know this will cause.”

Mr Day blamed the collapse on the failure of a developer from the Phillipines, Goshen Capital Resources, to fulfil a deal to buy 75 per cent of Home Australia.

“I had based all creditor payment plans and commitments on this deal going ahead,” Senator Day said.

“Given the strict ‘trading while insolvent’ rules that apply in Australia, it would not be possible now for the business to continue operating until another buyer is found.”

Home Australia’s subsidiaries have ceased all construction work.

Previously, there were 48 new homes under construction in South Australia by the Homestead Homes brand; 29 in Western Australia under Collier Homes; 17 in Queensland under Newstart Homes; 57 in Victoria under Ashford Homes and 56 in New South Wales under the Huxley Homes brand.