Victorian-based home builder Porter Davis is going into liquidation, while a second construction firm has entered voluntary administration.
Key points:
- Porter Davis’ liquidators are looking for builders to take over customer contracts
- Dozens of public building projects are at risk in New South Wales and Victoria
- More than 600 employees across both companies have been affected
Construction has been suspended on all Porter Davis’ projects, with 1,700 homes affected across Victoria and Queensland.
The construction company has about 470 employees and was forecasting revenue of $555 million in the 2023 financial year.
Customers and other creditors are being told to contact the liquidator Grant Thornton, as it investigates the reasons for the builder’s collapse.
A spokesperson for the liquidator said the company ran out of options.
“The extremely challenging environment for residential home building has directly contributed … with rising input costs, supply chain delays, labour shortages, and a drop in demand for new homes in 2023 impacting the Group’s liquidity,” the spokesperson said in a statement.
“Notwithstanding the financial support from shareholders and lenders, the Group has exhausted options to secure the further…