A Melbourne-based construction company has collapsed owing $2million.
River Dale Building Group Pty Ltd, which traded under the name Chatham Homes, went into voluntary liquidation on Monday.
All 16 staff have been laid off with the company owing 200 creditors around $2million.
It’s understood 50 homeowners have been affected by the sudden closure.
River Dale Building Group reportedly did not take out insurance for a small group of customers, meaning they will likely lose their home deposits.
Andrew Schwarz from insolvency firm AS Advisory was appointed as the company’s liquidator on Monday.
‘The business was operating but the business had basically run out of cash,’ Mr Schwarz told News.com.au.
‘It’s a victim of the industry unfortunately, all the usual pressures, increasing costs, delays, supply constraints.’
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A Melbourne-based construction company has collapsed owing $2million
Source: | This article originally belongs to Dailymail.co.uk