Building company Cubitt's Granny Flats and Home Extensions, which has an office in Mayfield, has collapsed with debts of $3.8 million and 120 affected projects.
The company, which worked in NSW and the ACT, announced on Tuesday that it had put itself into voluntary administration after operating for 30 years.
Most of the company's 80 staff have been stood down while some will be retrained to assist the administration process.
The phone at the company's Maitland Road, Mayfield display centre went unanswered.
Cubitt's has around 200 creditors, which are owed $3.8 million.
About 120 building projects have been impacted from its collapse.
It is not known how many Hunter projects have been affected.
Cubitt's said the economic downturn, which was flattening builders across the country, was responsible for the closure.
"Due to bank lending conditions, supply prices, taxation changes, insurance prices, Covid recovery and lengthy weather events, Cubitt's company has suffered more than it can shoulder," the company said.
Cubitt's made the decision in 2021 to honour fixed price contracts and not pass on price rises to their customers, bridging the shortfall and completing projects with significant loans to the company by the owners, Ian Cubitt, Kim Cubitt and Kate Cubitt, using their personal assets.
Richard Stone and Brett Lord from insolvency firm RSM Australia Partners have been appointed as administrators.
"We recognise this is a very uncertain time for employees," Mr Stone said in a statement.
Interested parties and impacted creditors are urged to contact cubitt@rsm.com.au.
