All Brick Tasmania: Report alleges insolvent trading and reveals history of collapses

A Hobart builder that collapsed owing millions was involved in two previous collapses, a new report says – while a related company also recently entered liquidation owing $5m. Latest >

Oakdowns man Matthew Barratt, 33, director of All Brick & Block (Tas) Pty Ltd, which has entered liquidation owing at least $2m-plus. Picture: Facebook

A report into the April collapse of a Hobart construction firm that owes more than $2.3m has alleged that the director traded insolvent for about 10 months and that there is “low to nil” possibility of a dividend being paid to creditors.

All Brick & Block (Tas) Pty Ltd, the company behind construction outfit All Brick Tasmania, entered external administration on April 11.

A report filed with corporate regulator ASIC by liquidator David Joseph Levi assessed the company as owing $2,349,543 to 44 secured, unsecured and priority creditors.

The lion’s share of the debt is owed to the Australian Taxation Office, owed $2,071,061 in unpaid PAYG and GST.

But Mr Levi’s report revealed that this is in fact the third time All Brick had encountered financial difficulty, with each collapse preceded by a business asset sale to a related company.

All Brick, whose director is Oakdowns man Matthew Barratt, 33, was founded in 2010 by Mr Barratt’s father Colin, and his company All Brick Brick Laying Pty Ltd.

Oakdowns man Matthew Barratt, 33, director of All Brick & Block (Tas) Pty Ltd, which has entered liquidation owing at least $2m-plus. Picture: LinkedIn

Eight days before the company entered liquidation on September 21, 2012, the business assets were sold to All Brick Tasmania Pty Ltd, a company owned by Colin and wife Deborah.

That subsequent company also collapsed, on October 11, 2017. The liquidator in that instance supervised an asset sale to All Brick & Block (Tas) Pty Ltd, the company which most recently collapsed.

According to Mr Levi’s report, as with the initial liquidation of All Brick Brick Laying Pty Ltd, the Barratts sold off the business assets just in the nick of time: All Brick has again been sold within the family, this time to Barratt Masonry Pty Ltd, a company owned entirely by Colin.

Mr Levi said that this transaction, completed on March 17 – just weeks before he was appointed on April 11 – potentially offended the Corporations Act as a voidable transaction.

However, he required additional funding from creditors in order to pursue that line of inquiry, his report said.

All Brick Tasmania’s former owner Colin Barratt, of Sandford. Picture: File

“I am unfunded to pursue that; nor is there an appetite for funding based on inquiry to date. [The] inquiry is ongoing,” he said.

Mr Levi also concluded that the company had been trading while insolvent since at least June 30 last year, incurring debts of “at least” $698,957. He said money potentially recoverable should he be funded to pursue the director, Mr Barratt, and should Mr Barratt have capacity to pay.

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“Liquidator will make demand … [I am] unable to comment on financial capacity,” he said.

Mr Levi said that the possibility of a dividend to any creditors, regardless of their status as secured or unsecured, was “low or nil”.

The saga enveloping All Brick is not the only blow to be struck against the Barratt family’s considerable construction interests.

Multi-Res Builders Pty Ltd, owned entirely by Colin, collapsed in late May owing an estimated $5,024,180 to about 100 creditors.

Mr Levi, who is also Multi-Res’ appointed liquidator, is yet to file his statutory report to creditors with ASIC in that matter.

Mr Barratt and his father Colin were both contacted for comment.