Mahercorp, which is the parent company of Eight Homes and Urbanedge Homes, has today sent a letter to its customers to announce it is entering voluntary administration.
But director and chief executive Steve Maher insisted the company is not in liquidation.
“I want to emphasise that Mahercorp has not collapsed and is not in liquidation. My intention is to work with the administrator on a plan that I hope allows us to restructure the business, creating more sustainable footing and to complete your home,” the letter from him reads.
Maher has said construction of customers’ homes will be put on hold for five weeks.
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He has cited “unprecedented challenges” builders are facing, particularly skyrocketing costs, as the cause.
“Materials and labour costs are at record levels and rising inflation is putting huge pressure on builders,” the letter reads.
“Entering voluntary administration was the only option after being advised earlier this week that the insurer for our supplier of essential safety equipment would no longer support our business.”
Mahercorp is a Victorian company.
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