AS one of the largest residential building companies in the Shoalhaven, Beechwood’s collapse threatens far-reaching consequences for an industry already on the brink of a downturn.
While details are slow to filter through to the home-owners, company employees and builders, the worst-case scenario has the collapse triggering a region-wide downturn.
The building industry is an economic barometer and with so much invested locally by Beechwood, this week’s news has many in the community awaiting its fate.
Beechwood Homes’ directors appointed a voluntary administrator on Tuesday without the consent or knowledge of the secured creditor, Bankwest.
As a consequence Bankwest took steps to appoint receivers and managers.
Prior to the receivers’ appointment, the company had preliminary discussions with a number of parties interested in buying the business.
The receivers are endeavouring to speak with those and other interested parties who may wish to purchase Beechwood’s assets.
A spokeswoman for Beechwood said the receivers were assessing the company’s affairs and determining its ability to continue to trade.
“At this stage it is too early to provide an indication of the eventual outcome for the stakeholders including creditors and home buyers or make any comment as to the reasons for the company’s failure,” she said.
“The receivers will also be contacting the respective home buyers to inform them of the position of the company and its ability to complete their homes,” the spokeswoman said.