Energy Street Pty Ltd in external administration amid claimed near $400k Multi-Res Builders debt

A northern construction business has been put on the market after being caught in the fallout of a failed Hobart builder that owes its creditors millions – with the company claiming they’re almost $400k out of pocket.

Prospect-based business Energy Street Pty Ltd is in external administration.

A northern construction business has been put on the market after being caught in the fallout of a failed Hobart builder that owes its creditors millions – with the company claiming they’re almost $400k out of pocket.

Prospect Vale based Energy Street Pty Ltd entered external administration last week, with David Mansfield and Travis Anderson appointed joint administrators on August 29.

The company, which is headed by directors Rodney Patterson and Wayne Mitchell, had recently taken a financial hit after the May liquidation of Hobart-based Multi-Res Builders Pty Ltd.

According to a report to creditors authored by its liquidator, David Levi, Multi-Res’ proof of debt amount to Energy Street sits at $251,289 – but Mr Mitchell says they are owed more for works in progress that took the amount closer to $400k.

A Multi-Res representative denied the claim that Energy Street was owed more.

Colin Barratt is the sole director of Multi-Res Builders Pty Ltd. The company went into liquidation in May 2023.

The embattled company’s total estimated liabilities sit at more than $6.219m – according to extracts from Multi-Res’ Xero records.

Mr Anderson said the first meeting of creditors will be held this Friday, but that it would be “business as usual” for Energy Street, who will continue operating as normal.

“We are looking to sell the business … We are currently running a sale process, and are looking for a new owner of the business,” Mr Anderson said.

He said the business employed 13 staff but had a “significant number” of subcontractors who were “heavily reliant” on the business, and that a “pretty urgent review” was underway.

A rise in material costs and the current “inflammatory environment” of the building industry was also a contributing factor in the company’s administration, Mr Anderson said.

Rodney Patterson is a director of Energy Street Pty Ltd.

Wayne Mitchell, is the second director of Prospect based Energy Street Pty Ltd.

Speaking to the Mercury, Mr Mitchell said it was “unfortunate” their business had “suffered” because of the collapse of Multi-Res.

He agreed that while costs including building materials and labour had contributed to their situation, he said Multi-Res “is our main reason why our business is in the position it is today”.

He said expressions of interest in the business were open, and that all offers would be considered.

“We are looking for a fairly quick turnaround, especially for our business clients and more so for our staff, to make sure we have a business to continue – and all signs point to [that] we will,” he said.

Mr Mitchell said it was likely Mr Patterson would exit the business in the next three weeks and it was their priority to find a viable option to ensure the continuation of the business.