‘Should have been foreseeable’: Liquidator alleges Multi-Res company engaged in insolvent trading

The director of an embattled building company which has left more than 20 projects and homes uncompleted owed members of his family – and their businesses – more than $1.5m in the year before his company went belly-up, according to a liquidator. WHO CLAIMS THEY’RE OWED MONEY >

Jack Bird is a first homeowner client of Multi-Res Builders, who is now uncertain of the future of his build.

An embattled director of a building company which left more than 20 projects and homes uncompleted owed members of his family, and related businesses, more than $1.5m in the year before his company went belly-up, according to a liquidator.

Multi-Res Builders Pty Ltd, directed by Colin Barratt, 62, is said to owe $5,024,180 in total estimated liabilities, according to a notice to creditors report by liquidator David Levi.

The report alleged $3,200,464 of which is owed to 99 unsecured – unrelated creditors, including $60,822 to Bunnings trade, $315,550 to Clennett’s Mitre 10, $201,592 to a window manufacturer, and $81,150 to Limcora Plumbing and Drainage.

An amount of $574,697 is also said to be owed to the Australian Taxation Office, as well as $292,664 in superannuation.

Mr Levi said he could not find any remedies to compensate those contractors through his investigation.

Colin Barratt, 62, (inset), and one of the unfinished Multi-Res Builders sites at Risdon Vale.

“ … There are no remedies, or monies available,” Mr Levi said in the report.

He added that 50 per cent of the unsecured creditors’ claims were older than four months, and that it was his opinion that there may have been insolvent trading.

“It should have been foreseeable that Multi-Res Builders Pty Ltd did not have financial capacity to generate sufficient funds to offset losses being incurred on delivery of fixed price building contracts which were entered into before or during the Covid-19 pandemic,” he wrote.

“The liquidator’s opinion is that there has been insolvent trading.”

He noted that “many creditors” held personal guarantees from Mr Barratt.

Mr Barratt declined to comment on the allegations contained in the report.

Mr Levi wrote Mr Barratt “could become bankrupt” in the likely event creditors with personal guarantees take action.

The site on Nagle Pl at Glenorchy where Multi-Res had been contracted to build 20 units for Homes Tasmania. Picture: Chris Kidd

“Creditors with personal guarantees will likely take action under personal guarantees against the guarantor personally. Colin Barratt could become bankrupt,” he wrote.

The report also stated $1,509,829 was owed to related unsecured creditors including All Carpentry (Tas) Pty Ltd, All Scaffolding (Tas) Pty Ltd, Tom Barratt and Sam Barratt.

In his estimates, Mr Levi said All Carpentry may be owed $1,269,083 – but said figures could rise or fall.

The Mercury has previously reported that All Carpentry (Tas) Pty Ltd is owned by Barratt & Sons Pty Ltd – which in turn is owned equally by Mr Barratt, and his sons Tom, Luke, Sam and Ben.

Tom Barratt is the director of All Carpentry.

Tom is also listed as being owed $172,417.

All Scaffolding (Tas) Pty Ltd is owed $47,997 and Sam Barratt is owed $20,352.

“These liabilities are older than 12 months. No material amounts have been paid to the above creditors over the preceding 12 months,” Mr Levi wrote.

A photograph that had been displayed on the now wiped Multi-Res Builders website. Third from left: Mr Colin Barratt. Second from left, Tom Barratt. Third from right, Matt Barratt.

The Mercury in its investigation has reported the claims from multiple businesses, former contractors and homeowners who are owed tens of thousands of dollars or even entire homes by the business.

One such project includes a $7.3m affordable housing project at Nagle Pl in Glenorchy, which Multi-Res was contracted to complete by Homes Tasmania.

Mr Levi in his report noted that ultimately, the 22 projects – in various stages of completion

were deemed “unprofitable contracts” and returned control to the owners.

“Upon appointment, the liquidator conducted an assessment of the costs to complete and determined that each contract unprofitable,” he wrote.

Projects were also listed at locations including Risdon Vale, Rokeby, Claremont, Lenah Valley, Austins Ferry, Bellerive, Midway point, Kingston and West Moonah, with many of the contracts signed on a fixed-price basis.

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