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RSM Australia Partners Richard Stone and Brett Lord were today appointed Voluntary Administrators of Ian Cubitt's Classic Home Improvements Pty Limited, trading as Cubitt's Granny Flats and Home Extensions (“Cubitt’s”).
Cubitt’s is a privately-owned building company that has been constructing age-friendly self-contained homes and housing extensions across New South Wales and the Australian Capital Territory for 30 years.
Directors of the company – Ian and Kate Cubitt – released a statement explaining their decision to put the family-owned and run business into voluntary administration.
RSM Australia Partner Richard Stone said repercussions from the well-documented challenges that had beset the building industry over the past few years were still being felt by some businesses like Cubitt’s.
Mr Stone said the company employed approximately 80 staff who were advised by the Cubitt family today of the Voluntary Administration and the intention to sell the business.
``We recognise this is a very uncertain time for employees. The majority of staff have been stood down, with some essential staff retained to assist the administration process. The Cubitt family have also pledged their full support during this process,’’ he said.
Mr Stone said the Administrators did not plan to continue trading the business but would instead take urgent steps to seek expressions of interest from the market for its purchase.
``Cubitt’s is an attractive business proposition having a solid market profile, quality product and a strong pipeline of work on its books. Our primary aim is to sell the business in its entirety, including, where possible, re-hiring employees and completing the projects that are on foot,’’ he said.
The Administrators are taking steps to secure the company’s assets and lock up the four display centres in Sydney, Newcastle, Wollongong and Canberra.
RSM’s initial examination of the company’s financial statements and records has identified about 200 creditors owed $3.8 million.
However, Mr Stone said these numbers were preliminary and may change following more detailed investigations over the coming weeks.
The Administrators have also identified about 120 building projects; 60 located on existing private properties at various stages of completion – 49 in NSW and 11 in the ACT; and a further 60 that are either in pre-construction or have been completed and are awaiting final payments.
``We understand this will be an anxious time for customers while we search for a new owner to buy the business and complete their homes or extensions. Our priority is to undertake this process as swiftly and efficiently as possible while keeping them updated on our progress,’’ Mr Stone said.
RSM will contact creditors this week to explain the Voluntary Administration process and next steps. Creditors affected by the administration of Cubitt’s should contact RSM via email at [email protected] Parties interested in purchasing the business can also contact RSM by the same email.
