Melbourne builder Kleev Homes collapses into liquidation owing $3.29m

Yet another construction company has collapsed into liquidation, devastating more than 100 tradies cumulatively owed $3.3 million.

Yet another Melbourne construction company has collapsed into liquidation, as casualties pile up in the sector.

News.com.au can reveal that earlier this month, Narre Warren-based residential builder Kleev Homes Pty Ltd went into liquidation.

Travis Pullen of insolvency firm B&T Advisory is the appointed liquidator.

ASIC documents obtained by news.com.au show that as of July 7, the building company owed $3.29 million to 162 unsecured creditors.

That includes $262,000 owed to the ATO and a further $707,000 owed to Westpac, who is listed as an unsecured creditor.

Despite the substantial debts, the business reportedly had $0.0 cash left in its bank.

The liquidator estimates some money will be recoverable, including by selling assets totalling $3088.

But Mr Pullen also believes a further $423,000 could be recovered from sundry debts that are owed to Kleev Homes.

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In the days leading up to the collapse of Kleev Homes, its website, social media accounts and phone lines were shut down, news.com.au understands.

An Interior designer working on a place next door to a home being built by Kleev Homes observed frustrated tradies visiting the premises earlier this month.

“I was over two weeks ago and trades were there trying to take back pipes and items in an effort to recoup some funds as the builder wasn’t answering calls,” they told news.com.au.

The liquidator, Mr Pullen, told news.com.au that the company’s demise has left five homes incomplete in Melbourne.

“Kleev Homes ceased trading shortly prior to my employment,” Mr Pulle added.

“The initial focus on my investigations is ascertaining what assets may be available for the benefit of creditors, including outstanding employee entitlements.

“I am yet to complete my investigations regarding the reasons for the Company’s failure, but as many will be aware the residential construction industry has struggled with the pressures of dealing with rising costs and labour shortages, resulting in fixed price contracts becoming unprofitable.”

Kleev Homes has been a registered business since 2006.

The company claims to have specialised in “complex, architecturally-designed new residences and renovations/additions. The company works throughout Victoria, focusing on Melbourne.”

Kleev Homes had received a number of awards over the years, including Young Master Builder of the Year, Best Custom Home several years running, and best renovations.

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It comes as the entire building industry is in crisis because of supply chain disruptions, skilled labour shortages, skyrocketing costs of materials and logistics, locked-in price contracts and extreme weather events.

So far this year, more than a dozen builders have collapsed.

A day before news.com.au reported on the collapse of Kleev Homes, news.com.au also revealed that another Melbourne builder, Avra Group, had also bitten the dust.

Earlier this month, news.com.au revealed that two building companies collapsed just days apart, NSW-based luxury builder Millbrook Homes and Victorian residential construction firm Bentley Homes.

Also in July, Perth-based building company Flexible Homes bit the dust.

Last month, news.com.au also reported that Melbourne construction firm Red Bluff Homes had gone into liquidation amid a dispute with a customer over suddenly cancelling the contract while Western Australian firm, the Slatter Group, also went into liquidation in June.

Australia’s 13th biggest builder, Porter Davis, also collapsed earlier this year, placing 1700 projects and another 779 empty blocks of land in jeopardy across Victoria and Queensland, while more than 1000 unsecured creditors owed a whopping $71 million.

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Originally published as Melbourne builder Kleev Homes collapses into liquidation owing $3.29m