One of Australia’s largest home builders has collapsed, leaving thousands of customers in the lurch, while a second construction business has entered voluntary administration.
Grant Thornton Partners confirmed on Friday it had been appointed liquidator of the Porter Davis Homes Group, covering 14 companies.
Englehart Homes is the only company in the group that is not subject to the liquidation.
Works on current builds would stop immediately, although liquidators were working to find a solution to support customers and some employees, liquidator Grant Thornton said.
Porter Davis has more than 1500 homes in progress across Victoria and 200 properties in Queensland. A further 779 customers have signed contracts where building is yet to commence.
It also has nearly 470 workers and had forecast revenue of $555 million in the 2023 financial year.
The liquidators said rising input costs, supply chain delays, labour shortages and dropping demand contributed to Porter Davis’ collapse.
“Notwithstanding the financial support from shareholders and lenders, the group has exhausted options to secure the further funding required to allow Porter Davis to continue to operate viably,” Grant Thornton said in a statement.
“The directors were left with no option but to place the companies into liquidation.”
The Porter Davis board of directors said they regretted the circumstances but were hopeful a solution could be found to support customers in completing their homes.
They also acknowledged the group’s 370 employees for their hard work and commitment to the company.
In more bad news for home builders and the construction industry, another Victorian construction business, Lloyd Group, has called in voluntary administrators.
The builder specialises in infrastructure projects for state and local governments, primarily in Victoria and NSW.
Its struggles potentially affect more than 200 employees and 59 projects under construction, including 29 in Victoria and 30 in NSW.
“Despite significant effort, Lloyd Group has been unable to overcome increasingly challenging circumstances over recent months that have eroded project margins,” Deloitte voluntary administrator Sam Marsden said.
“We will be undertaking an urgent assessment of the business’s financial position and project-by project status.”
– with AAP
