Yahoo Finance Major Aussie builder collapses leaving 108 homeowners in limbo: ‘Nightmare’
Grandeur Homes has gone into administration with construction works put on hold for more than a hundred homeowners.
A Victorian building company has gone into administration, leaving more than 100 homeowners in limbo as construction work grinds to a halt. It comes just weeks after the company claimed to be “thriving” with projects “progressing excellently”.
Grandeur Homes was placed into external administration on Friday, with Sam Kaso and Daniel Juratowitch of restructuring advisory firm Cor Cordis appointed as administrators. They confirmed construction works would be paused through the voluntary administration process.
“We’ve commenced an urgent review of Grandeur Homes’ financial position and are working with parties to explore the possibility of developing a proposal to restructure the business,” they said in a statement shared with Yahoo Finance.
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The administrators acknowledged some homeowners had been struggling to get updates on when their projects would be completed.
“We understand there are 108 homeowners affected by our appointment and have been made aware some homeowners have had difficulties obtaining updates from the Company on the progress of their construction recently,” Kaso and Juratowitch said.
“We have been in direct contact with homeowners already and set up a new dedicated email address for customers, employees, and creditors to provide regular updates as we work through the voluntary administration process.”
Are you a homeowner impacted by a company collapse? Share your story with tamika.seeto@yahooinc.com
Customers face building ‘nightmare’
Some customers have claimed they are facing a “nightmare” as building on their dream homes stall and they were left with a lack of information on when they will be complete.
One customer Karishma Seechurn said she was “super stressed and upset” at the news, having previously chosen to build with Snowdon Developments in 2020 before the company collapsed.
She signed a $349,000 contract with Grandeur Homes in March 2023 and claimed her project was still in the frame stage. Meanwhile, she said she was stuck paying off her mortgage on an unfinished house.
“I’ve got electricity and water bills and my monthly land mortgage repayments and construction interest rates are way higher,” she told news.com.au.
“I’m stuck with the bank with super high interest rates and then daily expenses on top of that.”
Company previously claimed to be ‘thriving’
Grandeur Homes hit out at reports of the company applying for cancellation of registration. It said the “rumours” were “completely false” on July 15.
"We are thriving and our projects are progressing excellently,” the company wrote on social media.
"Our sites are fully operational, and our customers are very satisfied with our work. Please disregard these false social media claims.”
The administrators said they were urgently assessing all business operations and were exploring all options to restructure or recapitalise the business.
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