A granny flat and home extension company has gone into voluntary administration, leaving more than 100 clients with unfinished projects.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Cubitt's Granny Flats and Home Extensions went into voluntary administration on Tuesday, February 27.
The 30-year-old ACT and NSW-based business has an office in Fyshwick.
Insolvency in construction businesses reached a 10-year high in the 2022-23 financial year, according to Australian Securities and Investments Commission data.
Owners Kate and Ian Cubitt said they had an "emotional meeting" with staff on Wednesday morning.
"We informed our loyal and hard-working staff in person where possible and remotely via video, some of whom have been with us for more than 25 years, of our decision," they said in a statement.
"After 30 years building homes, we never thought we'd find ourselves in a position where we'd be saying goodbye to our staff, our business, and the many steadfast customers and suppliers who have supported us. It has been the toughest of days."
Cubitt's said it entered voluntary administration after "bank lending conditions, supply prices, taxation changes, insurance prices, COVID recovery and lengthy weather events" made surviving unsustainable.
"Cubitt's made the decision in 2021 to honour fixed-price contracts and not pass on price rises to their customers, bridging the shortfall and completing projects with significant loans to the company by the owners, Ian Cubitt, Kim Cubitt and Kate Cubitt, using their personal assets," the company said.
"Unable to bridge the gap entirely, the directors have today appointed Richard Stone and Brett Lord from RSM Australia Partners as administrators with the objective of finding a buyer for this truly special and iconic business, building affordable housing that Australians can be proud to live in.
"Any inquiries regarding Cubitt's voluntary administration or the sale of the business should be directed to cubitt@rsm.com.au."
More to come.