Another major building company in New South Wales has gone into administration.
Clarke Homes, formerly known as Hotondo Homes, has ceased trading after a meeting with creditors on Wednesday.
This shocking news comes as the construction industry faces tough conditions, including higher interest rates and increasing costs.
What Happened?
The company, which owes over $3.1 million to more than 100 creditors, including employees who are owed wages and superannuation, has appointed administrators Jason Porter and Joshua-Lee Robb of SV Partners.
The administrators have assured customers that they will do their best to assist them through this difficult process. However, they warn that each case is unique and may require a different approach.
What Does This Mean for Homeowners?
If you’re a homeowner with a defective property, you’ll need to find another builder to complete the rectification work.
Unfortunately, you’ll then be able to claim as an unsecured creditor in the administration.
The Building Commission NSW is urging homeowners to contact them for assistance, support, or to lodge a complaint by calling 13 27 00.
A Growing Trend?
This isn’t an isolated incident. Several major building businesses have gone into administration recently, citing tough conditions in the construction sector.
Bensons Property Group, for example, entered voluntary administration in December, but claims that current projects will not be affected.
Other companies that have struggled include Clough Group, Probuild, and Porter Davis Homes.
The Bigger Picture
According to CreditorWatch, a staggering 3298 construction businesses entered external administration for the first time between February 2024 and January 2025.
This raises concerns about the stability of the construction industry and the impact on homeowners, employees, and trade creditors.
As the industry faces challenges, it’s essential to stay informed and seek advice if you’re affected.
What’s Next?
The administrators will provide further updates to creditors and customers in the coming week.
In the meantime, homeowners and businesses affected by the administration should seek their own legal advice to understand their options and rights.
Stay tuned for more updates on this developing story.