Western Sydney construction company Zadro Constructions entered voluntary administration last month, and is unlikely to resume trading in the future.
All seven staff members were made redundant as the Penrith company joined a growing number of the industry’s businesses going bust.
Grant Thornton administrators John McInerney and Cameron Crichton were appointed on September 15, and operations ceased as they discussed current projects with clients.
Looking for a new job or job candidate? Post jobs and search for local talent on 7NEWS Jobs >>
“The administrators held discussions with key customers regarding options to restructure the company’s affairs and complete projects underway,” a Grant Thornton spokesperson told 7NEWS.com.au.
“While discussions regarding the future of the projects are continuing, it appears unlikely that the business will recommence trading and all staff (seven) have been formally terminated.”
A meeting with creditors is set to take place later this month to determine the company’s future.
“A detailed report to creditors outlining, among other things, the causes of the company’s failure will be provided to creditors in the coming weeks when the administrators have completed their investigations.”
The company recently completed 14 school infrastructure projects in Sydney’s west and north, a fit out of the Westconnex Motorway Operations Complex, and the refurbishment and restoration of multiple churches.
Its downfall follows a worrying industry trend, echoing the fate of a number of construction companies to have entered administration or liquidation this year.
ASIC insolvency statistics show that 2213 building companies had collapsed during the 2022-23 financial year — a 72 per cent increase on the previous 12-month period.
On the East Coast, Porter Davis Homes Group and Lloyd Group went bust in late March, Interface Constructions Victoria collapsed in May, and Mahercorp also entered voluntary administration, affecting more than 700 homes, in May, but escaped liquidation, and Harmac Group entered voluntary administration last month.
In Western Australia, where the state government’s Building and Energy says an average of 22 residential building contractors become insolvent every year, Western Luxury Homes Modco Residential, Slatter Group, WA Housing Group, Flexible Homes, Individual Developments, Hamlen Homes and City Residence have all gone under.
Fixed price contracts, an escalation in costs, supply chain problems and trade shortages have been blamed for the downfalls.
If you’d like to view this content, please adjust your .
To find out more about how we use cookies, please see our Cookie Guide.