Craig Michael Kennedy, trading as CMK Shed Building, goes bust owing more than $1m

Half-finished projects are scattered across the region and more than $1m is owed to creditors after a Darling Downs-based shed building business went bust.

More than a dozen Darling Downs homeowners are owed tens of thousands of dollars after CMK Shed Building collapsed, leaving projects half-finished across the region.

The sole-trading business was run by Craig Michael Kennedy, whose bankruptcy proceedings were initiated on January 31, 2023.

A creditors report obtained by The Chronicle shows Mr Kennedy filed for bankruptcy on June 5, owing more than $1m.

About $400,000 of that was an estimated tax debt while the rest is owed to former clients and financial institutions.

Those creditors include Katrina and David James, who are owed an estimated $16,000.

The couple borrowed more than $100,000 to have Mr Kennedy – who was a friend of more than a decade – build two sheds on their property.

In October 2021 the couple designed the sheds and paid Mr Kennedy about $18,000 after he said they needed to lock in a deposit before an expected spike in the price of steel.

Craig Kennedy, of CMK Shed Building, a Toowoomba company that went bust owing more than $1m to clients, banks and suppliers.

“We paid it directly to his account then we waited and waited and I honestly don’t remember how many excuses were heard about the delays,” Ms James said.

“It kept going on and on and then in June last year we called the company supplying the sheds, Metroll, who told us only $500 of our $18,000 had been passed on to them.

“Then I was sent another invoice by CMK Shed Building asking for remaining money to be paid because (Metroll) was not going to deliver the shed unless it was paid in full and I thought, ‘no I am not going to pay that (to CMK Shed Building)’.”

Ms James paid the bill directly to Metroll to supply the shed components, and it was at this point she realised how bad things were.

The Chronicle spoke to several other creditors who reported matters where they paid deposits for work that was either not started or only partially completed.

Further to this, the Queensland Building and Construction Commission cancelled Mr Kennedy’s building licence on June 23 as a result of demerit points accrued from multiple failures to complete work or rectify defective work.

Mr Kennedy is now banned from holding a building licence for three years.

This leaves Ms James with a pile of building materials and a blank concrete slab on her property, and a big hole in her bank account as she looks for a builder to finish the job.

She said she feels let down by the institutions that oversee the building industry.

“You pay all this money to people who are meant to protect you, but in the end it doesn’t mean anything,” Ms James said.

“The Office of Fair Trading has done nothing, we have been talking to them for months but because of the bankruptcy they say we won’t get any money back.

“Someone needs to be accountable.”

The stress of the past two years has put a huge strain on Ms James’ marriage and her businesses, The Next Cafe.

“We have had to do extra work to raise the money to finish what we can, I have taken on catering jobs, I’m never home, the kids are by themselves a lot, David and I are working most weekends,” she said.

“I run around all week at the cafe by myself because I cannot afford to pay staff … so we don’t lose our house.”

When asked about the collapse, Mr Kennedy blamed himself for not paying closer attention to his business’ books and gave other reasons for the issues.

“None of it was intentional,” he said.

“No money got spent on us personally.

“She was lying to everybody thinking she could fix it.

“All of the money went on wages bills, insurance and loan repayments.”

He said he did not realise the scale of the debt until December 2022, and as soon as he did he contacted all of his creditors saying he would sell his Goombungee home to pay them back.

It sold in April for $600,000 but Mr Kennedy said most of the money went to paying off his mortgage.

“Going bankrupt is the last thing I wanted to do but we had to go to the solicitors,” he said.

“It all got taken out of our hands and we have spent a lot of money trying to fix it.

“A lot of money that went to the lawyers and liquidators could have gone to the people’s sheds.

“I should never get into selling sheds, I am lost and disheartened by it all.”