Builder with sites in NSW and ACT collapses after 30 years in operation

A building company that had been in operation for 30 years has collapsed with debts of $3.8 million and 120 projects impacted.

A building company that had been in operation for 30 years has collapsed with debts of $3.8 million and 120 projects impacted.

On Tuesday morning, Cubitt’s Granny Flats and Home Extensions announced that it had made the “devastating decision” to put itself into voluntary administration.

The builder worked in both NSW and the ACT.

Earlier on Tuesday, all 80 staff were called into a meeting where they learned the company was on its last legs and that most of them had been stood down.

“We informed our loyal and hardworking staff in person where possible and remotely via video, some of whom have been with us for more than 25 years, of our decision,” the company said in a statement supplied to news.com.au.

The meeting was described as “very emotional” and the decision was one that evoked “great sadness”.

Richard Stone and Brett Lord from insolvency firm RSM Australia Partners have been appointed as administrators.

“We recognise this is a very uncertain time for employees,” Mr Stone said in a statement to news.com.au.

“The majority of staff have been stood down, with some essential staff retained to assist the administration process. The Cubitt family have also pledged their full support during this process.”

A RSM spokesperson told news.com.au that according to the administrators’ initial estimates, Cubitt’s has around 200 creditors owed $3.8 million.

They added that 120 building projects have been impacted from its collapse.

Cubitt’s Granny Flats and Home Extensions has been in business for 30 years.

Cubitt’s has four display homes in Sydney, Newcastle, Wollongong and Canberra, which have been locked up, and administrators said they were taking steps to secure other assets.

Of the building sites, 60 are at various stages of completion.

There are 49 sites in NSW and 11 in the Canberra area.

A further 60 are either in pre-construction or have been completed and are awaiting final payments.

In 1994, the eponymous Ian Cubitt launched the business and said he had trained 120 carpenters in that time.

Cubitt’s said it was unable to continue because of the economic downturn flattening builders across the country.

“Due to bank lending conditions, supply prices, taxation changes, insurance prices, Covid recovery and lengthy weather events, Cubitt’s company has suffered more than it can shoulder,” the company said.

Cubitt’s said it had tried to “honour fixed price contracts” in 2021 and the owners, Ian Cubitt, Kim Cubitt and Kate Cubitt, tried to complete builds by financing it through their own personal money.

“We will be working with the Administrators to provide everything they need to achieve the best outcome they can for Cubitt’s, and its staff, customers, suppliers and other creditors,” they added.

Interested parties and impacted creditors are urged to contact [e-mail].

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Staff learned the business is up for sale at a Tuesday morning meeting.

News.com.au has reported on dozens of builders going into administration and liquidation over the past two years.

In times of economic hardship and inflation, building companies are usually the first to feel the pinch as they run on such small margins.

A staggering 2349 construction firms have collapsed in the past year — with fears more may fall soon.

Indeed, of the 8471 business collapses for 2023, almost 28 per cent were in the building and construction industry, according to data put out by the corporate regulator.

The previous Morrison government’s HomeBuilder grant, which was introduced in June 2020 and handed out $2.52 billion to owner-occupiers who wanted to build or substantially renovate a home, turbocharged the sector.

More than 130,000 customers signed on for the program, with many tradies agreeing to the work under fixed-price contracts that soon became unsustainable as prices began to soar.

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Originally published as Builder with sites in NSW and ACT collapses after 30 years in operation