)
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.
)
)
)
)
)
