Another home builder collapses as Porter Davis calls in liquidators

Another home builder collapses as Porter Davis calls in liquidators

Photo: Porter Davis Homes Group.

A home builder that was forecasting $555 million in revenue this financial year has called in liquidators after it was unable to secure the funding needed in a challenging construction environment.

Porter Davis Homes Group (PDH Group) appointed Said Jahani, Matt Byrnes and Cameron Crichton of Grant Thornton Australia as liquidators today for 14 companies across the group, which is currently building 1,500 homes in Victoria and 200 in Queensland.

Englehart Homes was acquired by PDH Group in 2021 and is the only subsidiary that is not subject to the appointment and continues to operate in its own right.

The news adds to a long list of housing construction industry victims so far this year such as EQ Constructions, LDC, Hallbury Homes, Pantha Homes, Delco Building Group and more.

Grant Thornton announced works on PDH's current builds will cease immediately, however the liquidators are working urgently to determine whether a solution can be found to support customers and some of the group's 470 employees. 

The liquidators will not be trading the PDH companies concerned and are currently engaging with key stakeholders and potential interested parties who may be willing to take over current customer contracts. PDH also has a further 770 contracts with customers where building has not yet begun. 

A spokesperson for Grant Thornton said investigations will continue into the reasons for the collapse.

"The extremely challenging environment for residential home building has directly contributed to the PDH Group’s financial position, with rising input costs, supply chain delays, labour shortages, and a drop in demand for new homes in 2023 impacting the group’s liquidity," the spokesperson said.

"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, and the Directors were left with no option but to place the companies into liquidation."

The PDH Group board of directors said they regretted the current circumstances and that their efforts to secure a funding solution for the group could not be achieved.

They further acknowledged the group’s employees for their hard work and commitment to Porter Davis, and were hopeful that a solution could be found to support customers in completing their homes.

ASIC records show two notices relating to builders for yesterday alone, with Cunniffe Construction appointing liquidators and Simply Built announcing a voluntary wind-up.

 

 

Get our daily business news

Sign up to our free email news updates.

 
Finexia’s Childcare Income Fund secures ‘very strong’ rating from Foresight Analytics & Ratings
Partner Content
Private credit specialist Finexia Financial Group (ASX: FNX) has secured a “very...
Finexia
Advertisement

Related Stories

Infrastructure builder Lloyd Group goes bust amidst "eroded project margins"

Infrastructure builder Lloyd Group goes bust amidst "eroded project margins"

After 44 years in business as a family company that started in Melb...

‘Devastated' boss of collapsed Pivotal Homes warns that risk has swung against builders

‘Devastated' boss of collapsed Pivotal Homes warns that risk has swung against builders

The devastated boss of collapsed Gold Coast homebuilder Pivotal Hom...

Victory Offices appoints voluntary administrators but maintains company is solvent

Victory Offices appoints voluntary administrators but maintains company is solvent

Co-working and flexible workspace services provider Victory Offices...

Probuild’s small creditors spared a total wipeout as $1.8m payout covers their debts

Probuild’s small creditors spared a total wipeout as $1.8m payout covers their debts

Small creditors of Probuild have been spared financial pain from th...