A construction company located in two different states and territories collapsed, leading to a “domino effect” affecting 130 projects and 80 staff.
On Friday, creditors voted to liquidate Cubitt’s Granny Flats and Home Extensions.
The builder has worked in NSW and ACT and has been in business for 30 years.
News.com.au previously reported that the family business was placed into administration earlier this year and had debts of $5.7 million.
Of its significant debts, $2.6 million is owed on 77 transactions.
At an administration meeting late last week, creditors voted to liquidate Cubitt.
Appointed administrators Richard Stone and Brett Lord of insolvency firm RSM Australia have now become liquidators.
“One business failure has a domino effect on so many people, from staff, to clients, suppliers and other stakeholders,” Stone said. “Today, these impacts are compounded by a fragile economy and businesses and households that are struggling.”
The collapse left 130 projects in various stages of completion in limbo and 80 staff members out of a job.
Liquidators have managed to scrape together what they hope could be some sort of recovery for creditors.
New South Wales-based construction firm Acrow Homes Pty Ltd has acquired some of the company’s assets, including Cubitt’s business names, intellectual property, project documentation and exclusive rights to
its customer list, for an undisclosed amount.
In a previous report from creditors, insolvency experts estimated that Cubitt had assets worth $1.67 million.
Do you know more? Contact | alek.turner-cohen@nevs.com.au
News.com.au previously reported on a customer who was completely bewildered to learn of the collapse of Cubitt’s, having put down a $23,000 deposit just 12 days earlier.
Vince*, who did not want to share his last name, and his wife Catherine, 49, have been toying with the idea of building a granny flat in their backyard as another source of income.
After months of haggling and haggling with their favorite builder, Cubitt, the Sydney couple finally put a $23,000 deposit into the business.
But less than two weeks later, the deal fell through.
Father-of-three Vince is now questioning how the business could have taken his money at such a late stage if the company knew it was in financial trouble.
“It was a shock,” he told nevs.com.au. Based on his interactions with the staff, he said it seemed like a surprise to them as well.
Vince said he only found out about Cubitt’s collapse because surveyors were due to visit his yard this Tuesday, the same day the builder went into external administration.
He said the surveyors called him before they arrived and asked if he would be willing to pay them directly.
When he asked why, they said it was because Cubitt had failed.
“We looked at their show homes, we were excited, we were trying to provide a future for our children,” he said. “Now we’re just hit with this.”
In 1994, the eponymous Ian Cubitt launched the business and says he has trained 120 carpenters in that time.
Cubitt’s said it was unable to continue because of the economic crisis that is flattening builders across the country.
“Due to bank lending conditions, acquisition costs, tax changes, insurance costs, the recovery from Covid and prolonged weather events, Cubit’s company has suffered more than it can handle,” the company said.
Cubitt’s said it tried to “meet fixed price contracts” in 2021, and the owners, Ian Cubitt, Kim Cubitt and Kate Cubitt, tried to complete the build by financing it with their own personal money.
alek.turner-cohen@nevs.com.au