Australian company Plumbfirst Group collapses, 170 jobs at risk
A national Australian company has gone under with administrators working to try and save the firm and prevent disruption to customers.
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A major Australian business has become the latest casualty due to worsening economic conditions and rising prices as it collapsed risking 170 jobs.
The plumbing and electrical contracting firm, Plumbfirst Group, and six related business have been placed into voluntary administration after it blamed rising material costs for its demise.
WLP Restructuring Partners, Alan Walker and Glenn Livingstone, were appointed on Wednesday as administrators and are urgently seeking an injection of funds or a buyer for the group.
Mr Walker said the decision to appoint administrators was made by the group’s directors 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," he 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.”
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The administrators will continue trading the group with no interruption to ordinary operations expected at this stage, they added.
Currently, it is unclear how much debt and the number of creditors that are impacted by the collapse.
Plumbfirst Group’s related business also include Bblautofirst Pty Ltd, Comfyfirst Pty Ltd, Elecfirst Pty Ltd, Firstaction Group Pty Ltd, Plumbfirst Pty Ltd, and Plumbfirst Elecfirst Comfyfirst NSW Pty Ltd.
The first statutory meeting of creditors will be held on 24 April.
Its not the first plumbing contractor to collapse this year.
In February, major Victorian contractor CDC Plumbing and Drainage announced its shock closure after it collapsed owing $7.1 million, while 197 staff members lost their jobs on the spot as a result of its demise.
It comes at a torrid time for the building industry which is having a knock on effect for contractors.
A string of construction firms have gone under this year – the most recent being one of Australia’s largest home builders Porter Davis Homes.
It collapsed suddenly at the end of March placing 1700 projects in jeopardy across Victoria and Queensland, while another outfit Lloyd Group, also went under with 59 projects and 200 staff impacted.
Last month another major player PBS Building, a multimillion-dollar firm which does a mix of commercial and residential projects across Queensland, NSW and the ACT, sent shockwaves through the industry when it collapsed.
In February, 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.
The next day Melbourne-based residential builder Hallbury Homes also went into voluntary administration.
Earlier in February, award-winning residential construction company Delco Building Group in Victoria went under owing $780,000 to 50 creditors.
NSW based building company Ajit Constructions was also ordered into liquidation by the Supreme Court of NSW after an application by one of its trade creditors Boral Resources NSW.
Originally published as Australian company Plumbfirst Group collapses, 170 jobs at risk
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