KAM Joinery: Every creditor listed in Hobart builder’s $1m+ collapse

An award-winning Hobart builder in business since the 1980s has collapsed with huge debts, deleting all its social media pages in the process. FIND OUT WHO’S OWED WHAT >>

An award-winning Hobart joinery company in operation since the 1980s has collapsed with debts of at least $1m, leaving nearly 70 customers, employees, businesses and lenders potentially out of pocket.

Mornington-based KAM Tasmania Pty Ltd, which traded as KAM Joinery, appointed Shelley-Maree Brooks, of Rodgers Reidy, as administrator on Wednesday, owing debts to 67 creditors.

According to the report on company activities and property (Rocap) filed with corporate regulator ASIC by director Adam Burbury, Kam owes $1,022,158.98 in total, consisting of employee, secured and unsecured creditors.

KAM Joinery director Adam Burbury. Picture: Facebook

However, Kam’s debt is certainly higher than the amount able to be calculated by the Mercury, as the Rocap lists five secured creditors and two unsecured creditors to whom the debt is “unknown”.

This house at New Town, by KAM Joinery, was named best Renovation/Addition Under $200,000 in the 2018 Master Builders Association Tasmanian awards. Picture: File

Kam owes nine employees a total of $62,791.05 by way of unpaid wages and outstanding benefits, in amounts ranging from $381.06 – $23,282.55.

It owes a further $76,103.88 to the Australian Taxation Office by way of unpaid employee superannuation.

It owes 10 secured creditors at least $564,960.74, with lender ANZ Australia owed the most, $291,852.21.

Finally, Kam owes $457,198.24 to 467 unsecured creditors, including suppliers, contractors and customers whose work will remain unfinished.

These range in amounts from $63,206 owed to B & B Joinery – Boutchard And Barisic, down to $35.98 owed to Inspirations Paint.

On the other side of the balance sheet, Kam is owed $16,599.75.

Mr Burbury’s Rocap asserts that the company possesses bank accounts, motor vehicles, plant and equipment and inventory in its name, but holds no real property or other assets.

Ms Brooks told the Mercury she had only “suspended” Kam’s operations at this stage.

“I’m looking at whether I can find a purchaser for the business,” she said.

“The director had already engaged a broker (prior to my appointment).”

Ms Brooks said her investigations were still in their infancy, so it was not possible to diagnose what went wrong at Kam at this stage.

She had identified, however, a “lack of workers” as contributing to the collapse.

“They had a shortage of joiners, I believe it’s pretty common in the industry,” Ms Brooks said.

KAM Joinery’s Mornington workshop in 2015. Picture: Sam Rosewarne

The first creditor’s meeting will be held on June 3 in Hobart.

Mr Burbury was contacted for comment.

It’s understood he purchased the business from long-term owner Simon Ottway in 2017.

While all its social media pages have been deleted, including Mr Burbury’s LinkedIn profile, Kam’s website, which remains live at the time of publication, describes itself as having earnt a “reputation as one of Tasmania’s leading custom joinery businesses” since its founding in 1987.

Its website lists 16 Housing Industry Awards and Master Builders Australia awards won by Kam between 2000–20.