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A Melbourne home renovation company has collapsed leaving behind unfinished projects and owing millions to creditors including tradies and suppliers.
Hawthorn-based company Ultimate Kitchens & Bathrooms was placed into liquidation on October 31.
Consumer Affairs Victoria had issued a public warning about the business the day after their collapse after receiving an ‘influx of concerning contacts relating to the company’s operations’.
The watchdog claims the company had taken on jobs and received deposits but failed to ‘fulfil consumer contracts… (or) respond to customers’.
It is just the latest of hundreds of building companies that have collapsed throughout 2023.
Yet another Australian building company, Ultimate Kitchens and Bathrooms (pictured) has collapsed reportedly owing millions in unfinished projects and unpaid tradies and suppliers
PCI Partners director Stephen John Michell has been appointed as the company’s liquidator.
In a letter to creditors seen by the Herald Sun, Mr Mitchell said 52 projects have been left half-finished while a further 43 households had paid deposits for builds that are yet to have started.
The company had taken as much as $2.5million for the unfinished projects while owing suppliers and tradies about $2million.
The letter blamed lockdowns during the Covid-19 pandemic for causing ‘lost trade suppliers, supply chain issues for materials and price rises for materials and labour’.
‘The above factors led to a reduction in revenue and sales, however, the company’s costs remained the same, resulting in cash flow issues for the company,’ the letter reads.
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Reviews on Ultimate Kitchen’s Google page reveal countless customers claiming to have ‘endured hell’ with the company.
One customer claimed to have been ignored by Ultimate Kitchens staff after being told their project will be ‘finished before Christmas’.
‘When trying to confirm the start date was on track – no responses, evasiveness, broken promises to return calls,’ the customer wrote.
‘We stood in their showrooms waiting to speak to people and were treated with utter disrespect.
‘We understand they are insolvent, despite asking this question and being told “no”.’
Other customers reported serious construction faults and incorrect orders that remained untended to for months at a time.
The Hawthorn-based company is believed to have left behind over 100 unfinished projects which cost customers about $2.5million in deposits (stock image)
Nicole Rich, Director of Consumer Affairs Victoria, said she issued the warning in the public’s interest ‘given the number and serious nature of issues raised’.
Ms Rich urged customers to ‘be cautious’ when dealing with the company.
Just three days after Ultimate Kitchens entered liquidation, an Adelaide-based house builder, Residence Building Group, was placed into voluntary administration.
The construction company had specialised in building architecturally-designed houses, renovations and extensions in Adelaide’s more upmarket eastern suburbs.
Residence Building Group had been in operation for 14 years and collapsed owing almost $2.1million.
More to come.
