…Researched and contributed by Jack Sylva.
Another Australian home building company, Mahercorp, has announced that it will enter voluntary administration.
Despite this, the CEO has emphasized that the company has “not collapsed” and is not in liquidation.
Mahercorp is based in Melbourne and is the parent company of Urbanedge and Eight Homes.
In a statement to customers, CEO Steve Maher explained that the company’s intention is to work with the administrator to restructure the business, creating a more sustainable footing and completing homes.
He cited the unprecedented challenges currently faced by all builders, including rising building costs, materials and labor costs at record levels, and increasing inflation.
The company has been renegotiating trading terms with its suppliers and insurers for months to ease the strain of these cost increases.
Maher also explained that entering voluntary administration was the company’s only option after learning that its insurer would no longer support the business.
As a result, the preparation of new homes to go to site will be put on hold for the five-week duration of the voluntary administration.
Any appointments, including contract, electrical, or colours, that customers have booked during this period will also be on hold.
Mahercorp primarily works in Melbourne’s northern and western suburbs.
The news comes as the construction industry faces dire conditions, with several other home building companies in Australia having gone into administration in recent years.
The industry has struggled with rising costs, a shortage of skilled workers, and ongoing pandemic-related disruptions.