Yahoo Finance Another Aussie builder goes bust
Another Aussie builder has fallen victim to the construction crisis seizing the country.
Zadro Constructions had to lay off all seven of its staff as it went into voluntary administration last month.
Grant Thornton Australia was appointed as administrator for the western Sydney-based outfit on September 15.
The company’s website was no longer operational on Monday, and the LinkedIn profile of an individual listed as a director of the company appeared to have been deleted.
Zadro Constructions is unlikely to resume trading in future, a spokesman for Grant Thornton Australia told 7News.
The news of Zadro’s demise was met with anger online, with several commenters claiming the collapsed company owed them money for services provided.
NCA NewsWire is not suggesting Zadro Constructions or its directors behaved improperly.
Zadro had recently worked on 14 school infrastructure projects in west and north Sydney along with several church redevelopments, according to the company’s Instagram page.
The future of Zadro’s unfinished projects is up in the air.
“The administrators held discussions with key customers regarding options to restructure the company’s affairs and complete projects underway,” a Grant Thornton spokesman told 7News.
“While discussions regarding the future of the projects are continuing, it appears unlikely that the business will recommence trading and all staff (seven) have been formally terminated.”
NCA NewsWire contacted Grant Thornton for comment on how much money was owed by Zadro to tradies and suppliers.
Zadro’s downfall is the latest in an increasingly long list of construction industry failures.
At least 660 construction companies have gone bust in the first three months of the 2023-2024 financial year, according to data from the Australian Securities and Investments Commission.
The grim statistic means the construction industry is on pace to beat its own unwanted record of 2,213 companies which went under in the previous financial year.
Several factors have been blamed for the crisis, including supply chain challenges and a blowout in costs for fixed price contracts.
