Yahoo Finance Homeowner shock as company collapses
South Australian residential construction company Felmeri Homes has entered into voluntary administration, leaving customers with incomplete builds in the lurch.
The home builder, which was established in 2006, was placed under external administration on Friday owing creditors around $2m.
The collapse comes after the family-owned business was subject to several “serious” complaints from clients regarding delayed and allegedly defective builds.
Consumer and Business Services SA said it was investigating the builder.
Devastated customers have taken to social media to share their experiences and images of their incomplete homes as they question what their options are.
One such client, Jessica Lee Harrison, posted photos of the unfinished development at O’Halloran Hill Estate taken by homeowners.
“Three years on and this is what we have now,” she said.
SA Consumer and Business Services Commissioner Dini Soulio said his organisation was working with the builder’s administrator to ascertain whether the company would continue to trade and “what that means for customers”.
While it is not known how many customers have incomplete homes with Felmeri, CBS has taken steps to ensure the company can’t sign any new customers.
Copper Coast Mayor Roslyn Talbot, within whose local government area the abandoned Wallaroo Shores Resort is situated, said the 100 units were due to be completed in September 2023.
The $42m project, the company’s largest, was originally scheduled to finish in 2022 but construction ran into “significant obstacles”.
“I have confidence the developers will find a solution to complete this project,” she said.
Administrator Leigh Prior from Agile Business Advisory confirmed close to 150 unsecured creditors were owed about $2m.
Related companies also have claims in for more than $2m, while secured creditor ANZ is owed around $500,000.
Felmeri had begun construction on 43 homes and had recently signed contracts for at least another 20 homes on which construction had not yet started.
Mr Felmeri Sr told The Advertiser on Monday that all unfinished homes would be completed, albeit at a higher cost to the homeowner, and suggested some customer complaints had been inaccurate.
“As soon as we get insurance they will be built,” he said.
“Everything will be coming good.
“What we priced five years ago we can’t do.”
The fate of the company could be determined in a second creditors’ meeting that administrators are required to hold within five weeks of appointment.
It is expected that creditors will vote at this meeting on whether to support a proposal by directors for a repayment plan or to liquidate the company.
NCA NewsWire has contacted Felmeri Homes for comment.
