The Cubitt’s Display Centre in Fyshwick. Eleven projects were affected in the ACT. Photo: Cubitt’s.
A 30-year-old, family-owned building company has gone into liquidation, but clients will have their projects completed after the sale of parts of the business.
Cubitt’s Granny Flats and Home Extensions was formally placed into liquidation at a creditors meeting last Friday (14 June).
The reconvened second meeting of creditors of Ian Cubitt’s Classic Home Improvements Pty Ltd – formerly trading as Cubitt’s Granny Flats and Home Extensions – was held in-person and online in Sydney.
Company administrators RSM Australia said any return to creditors was uncertain, but there was good news for the 130 clients whose homes have been on hold since the builder entered voluntary administration in late February.
The administrator said NSW-based construction firm Acrow Homes Pty Ltd had purchased Cubitt’s business names, intellectual property, project records and exclusive rights to its customer list.
RSM Australia partner Richard Stone said Acrow had already reached out to the Cubitt’s clients, advising them it was ready to “restart, reinvigorate and complete” their projects.
“While this is welcome news, the administrators understand this has been a very challenging and stressful period for everyone involved,” he said.
“The failure of one business has a domino effect on so many people, from staff to clients, suppliers and other stakeholders.
“Today, these impacts are being compounded by a fragile economy and businesses and households who are doing it tough.”
Mr Stone said the return to creditors would be subject to future recoveries.
Cubbitt’s went into administration owing 200 creditors $3.8 million, leaving 120 projects in train or awaiting payment and 80 staff out of work.
Eleven projects were in the ACT.
Mr Stone had told creditors at the first meeting that the company’s deteriorating cash flow, coupled with declining margins and increasing costs, had led to its difficulties in conjunction with the COVID-19 pandemic and several extreme weather events.
The administrator had searched nationwide for a potential purchaser but a deal to buy the company in full did not eventuate.
The company has four display centres, in Canberra, Sydney, Newcastle and Wollongong.
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