Liquidator issues grim warning to Tasmanian creditors of home building firm G.J. Gardner

The liquidator assigned to manage the collapsed Hobart outlet of national building firm G.J. Gardner has revealed details about the accounts of franchisee LV Built. What she found >>

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

The liquidator assigned to manage the collapsed Hobart outlet of national building firm G.J. Gardner has revealed that the bank accounts of franchisee LV Built were completely empty when the company went under.

But she warned creditors not to take matters into their own hands, following reports that out-of-pocket suppliers were accessing G.J. Gardner building sites to “reclaim” fittings and materials.

Shelley Brooks, director of insolvency and restructuring firm Rodgers Reidy and who has dealt with approximately 40 contracts since G.J. Gardner’s Hobart West franchise closed on April 2, said it was an emotional time for all involved.

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

And Ms Brooks warned that the financial outlook for unsecured creditors - which she said included purchasers who had laid down deposits on home, as well as unpaid tradespeople and suppliers - looked grim.

“Unfortunately, there were no funds in any of the accounts for me to be able to trade,” Ms Brooks said.

“But I have made contact with a number of local building companies who have indicated their interest in being able to assist these clients.

“This has been extremely distressing for everyone involved, no matter how far into the build they are, whether it has started or not.

“But I will do everything that I can for them.”

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

Ms Brooks encouraged any G.J. Gardner client, contractor, or supplier who had not yet heard from her to make contact with Rodgers Reidy to obtain advice.

Interested parties could also reach out to G.J. Gardner mainland headquarters, or to Tasmania’s Consumer Building and Occupational Services (CBOS).

But Ms Brooks said that most of those homeowners who had already paid money to LV Built could not expect to recoup their losses.

“Unfortunately they will rank as an ordinary, unsecured creditor,” she said.

“And at this stage of my investigations it is too early to determine whether there will or won’t be a return to creditors.

“And for contractors, unless they have a PPSR (Personal Property Securities Register) registration, they rank the same as homeowners.”

Ms Brooks said that while LV Built had no cash in its accounts, her team had managed to locate other company assets including vehicles, plant, and equipment.

But she urged disgruntled contractors and suppliers to obey the law when it came to recovering losses from the failed builder.

“I have received some correspondence from home owners that their properties had been broken into, and items have been removed,” Ms Brooks said.

“I really urge everyone not to do that. I understand that people are hurting, and there are so many people involved in this.

“But home owners have paid for items that have been installed.”

Ms Brooks said that as the cost of living crisis intensified, her officer was receiving an increasing amount of enquiries.

“We are trying to assist a lot more people, and it’s heartbreaking for myself and my staff hearing these stories from homeowners, subbies and employees,” she said.

“I just say to people, if you are struggling please speak to people sooner rather than later.

“But homeowners should really try to research the builders they are engaging with.”

The Mercury contacted LV Built Pty Ltd for comment.