G.J. Gardner building franchise collapse leaves creditors $1.8m out of pocket, liquidator files reveal

The collapse of the Hobart outlet of national building firm G.J. Gardner has left building suppliers on the hook for more than $1.8 million. Documents reveal the details >>

The office of GJ Gardner on Sandy Bay Road in Battery Point that is now closed. GJ Gardner Hobart goes into liquidation. Picture: Nikki Davis-Jones

The collapse of G.J. Gardner’s Hobart franchise has left building suppliers on the hook for more than $1.8 million, with financial documents revealing the bulk of the debt is owed to unsecured creditors.

Correspondence to creditors from insolvency firm Rodgers Reidy, obtained by the Mercury, details the amounts that were owed to more than 100 separate businesses when franchisee LV Built entered into liquidation last week.

Among the list of local suppliers, Clennett’s Mitre 10 is owed more than $125,000, Austral Bricks $70,000, Dowell Windows $64,000, and Connect Electrical $32,000.

LV Built still owes Queensland-based business NextEraEnergy Franchising more than $220,000, while Coffs Harbour firm Wet Seal is owed $6000.

GJ Gardner Hobart in liquidation – home under construction in Bellerive. Picture: Caroline Tan

Included in the list of secured creditors, who are cumulatively owed more than $310,000, are Toyota Finance ($70,000), ANZ Bank ($46,000), and Glenorchy’s McKay Timber ($75,000).

Rodgers Reidy estimated its own costs of administering the liquidation process of LV Built at $60,000.

The financial details behind LV Built’s downfall were revealed as Federal Minister for Housing Julie Collins said her government was working with its Tasmanian counterparts to provide assistance for those homeowners caught out by the firm’s sudden collapse.

Ms Collins acknowledged the difficult situation currently facing many Tasmanians customers, saying G.J. Gardner’s Hobart outlet was unfortunately just one of a number of building firms to go bust in recent times across the nation.

“Sadly we have seen some of these types of collapses around the country when it comes to particular construction companies,” Minister Collins said.

“Post-Covid, we have seen increased input costs, and supply-chain and labour issues across Australia and indeed around the world.

“While the Federal Government is working with state and territory governments, the states and territories have most of the levers in terms of making sure that businesses along the supply chain are protected, and that consumers are protected.

“Some states already have very significant schemes of compensation and insurance.

“Tasmania doesn’t yet have one. It probably should.”

Documents reveal that Clennetts Mitre 10 is owed more that $125,000 by LV Built.

Minister Collins said that the Federal Government was working closely with the Australian building industry to help ensure experiences such as G.J. Gardner’s Hobart collapse were not repeated.

“We need more homes for Australians, and need to find more ways to grow the industry,” she said.

“We know that in terms of the construction industry there have been some issues, but we hope that we are through the worst of them now.”

LV Built was contacted for comment.