All employees will be laid off as Zadro Constructions takes over administration
Western Sydney construction company Zadro Constructions entered voluntary administration last month and is unlikely to resume operations in the future.
All seven employees have been made redundant as the Penrith company joins a growing number of companies in the sector to go bust.
Grant Thornton administrators John McInerney and Cameron Crichton were appointed on September 15 and operations were suspended while they discussed current projects with clients.
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“The administrators have been in discussions with key clients about options to restructure the company’s affairs and complete ongoing projects,” a Grant Thornton spokesperson told 7NEWS.com.au.
“While discussions regarding the future of the projects continue, it appears unlikely that the company will resume operations and all employees (seven) have been officially laid off.”
A meeting with creditors is scheduled to take place later this month to decide on the future of the company.
“A detailed report to creditors, setting out, among other things, the causes of the company’s failure, will be presented to creditors in the coming weeks once the insolvency administrators have completed their investigations.”
The company has recently completed 14 school infrastructure projects in western and northern Sydney, an expansion of the Westconnex Motorway Operations Complex and the refurbishment and restoration of several churches.
The decline follows a worrying trend in the industry and reflects the fate of a number of construction companies that have gone bankrupt or liquidated this year.
ASIC insolvency statistics show that 2,213 construction companies had collapsed in the 2022/23 financial year – a rise of 72 per cent compared to the previous 12-month period.
On the East Coast, Porter Davis Homes Group and Lloyd Group went bankrupt at the end of March, Interface Constructions Victoria collapsed in May and Mahercorp also entered voluntary administration in May, affecting more than 700 homes, but escaped liquidation. and Harmac Group went into voluntary administration last month.
In Western Australia, where an average of 22 housebuilders go bankrupt each year, according to the state government’s Construction and Energy Department, these include Western Luxury Homes Modco Residential, Slatter Group, WA Housing Group, Flexible Homes, Individual Developments, Hamlen Homes and City Residence sunk.
Fixed-price contracts, rising costs, supply chain problems and trade bottlenecks are blamed for the declines.
