Porter Davis, Australia’s 12th largest builder, with the bulk of its book in Victoria, collapsed today.
Factors including supply chain delays, labour shortage and costs and a drop in demand – coming off 10 interest rate rises – were cited.
About 60 of the volume builder’s c450 staff will be retained to manage accounts during the liquidation.
Work has stopped on nearly 1700 sites – 1500 in Victoria – with customers being advised to register claims with the Victorian Managed Insurance Authority which provides insurance cover to homeowners if a builder folds.
Contracts for another 800 homes were signed but construction hadn’t yet started.
Grant Thornton has been handled administrator for 14 Porter Davis Homes companies; there are believed to be more than 1500 creditors.
Englehart, which Porter Davis acquired in late 2021 as part of plans to diversify into the prestige sector, is unaffected.
No buyer found
The PDHG liquidation comes months after a local or offshore buyer was sought for the company which was turnover over c$550m per year.
The administrator said talks are underway with parties which might take over particular parts of it (story continues below).
Any sale could take over existing contracts.
Lloyd Group falters
Meanwhile, Melbourne based national builder Lloyd Group was also put into voluntary administration today.
Its employed 200 staff and was managing 59 projects in Victoria, New South Wales and Queensland.
The state government, for its Better Schools project, was a key client.
Deloitte is the administrator.
The collapses come 13 months since Probuild entered administration.
In that case, major builders took over projects including Hutchinson, for a Brisbane apartment development, and Roberts Co – which seized control of a half dozen contracts including Golden Age Group’s 130 Little Collins St strata office building.
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