Fortunato Group has been placed in liquidation after almost six decades in business
A Melbourne earthworks company with 60 staff and $50m in turnover has gone into liquidation after almost 60 years in business.
Business
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Melbourne-based civil construction, earthworks and contracting firm Fortunato Group has been placed in liquidation with up to $9m in debt outstanding.
Dino Calvisi of Paladin Advisory has been appointed liquidator of the Campbellfield company, which has been in business for 58 years.
Mr Calvisi said the assets of the business had been sold, and the reconciliation of outstanding debts was underway.
“In the way of creditors there’s probably in the vicinity of $8m-$9m,’’ Mr Calvisi said.
Mr Calvisi said the total shortfall once the sale of assets was factored in was still being calculated, however would likely be about $7m-$8m.
Mr Calvisi said he was appointed on February 14 and it soon became apparent that the business could not be salvaged.
“It couldn’t be saved. All its contracts were effectively in a loss situation, there were contracts that hadn’t even been started which were signed 18 months ago,’' he said.
Mr Calvisi said a 30 per cent increase in costs and an inability to find staff had hobbled the business.
“Councils and developers wouldn’t take on board the increases, there’s a shortage of workforce and they’re all going to government projects which are paying over the odds.
“It was just a combination of factors which brought down a 58-year-old company.’’
The company employed about 60 staff. Mr Calvisi said it appeared that staff payments were up to date while entitlements such as redundancy and long service leave would be covered by the federal government’s Fair Entitlements Guarantee scheme.
Fortunato Group was founded by John Fortunato and has worked on numerous civil construction and residential projects across Melbourne over the years.
Its website says it turned over about $50m per year.
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Originally published as Fortunato Group has been placed in liquidation after almost six decades in business
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