A major Australian construction company, PBS Building, which generated over $90 million in revenue last year, has gone into voluntary administration.
The company constructed large residential and commercial projects in New South Wales, the ACT, and Queensland over the past 33 years.
However, on Tuesday, the insolvency firm RSM Australia Partners Jonathon Colbran, Richard Stone, and Mitchell Herrett announced that the company had collapsed.
The sudden collapse was followed by a notice on the company’s website, which left 180 staff members across the east coast without jobs.
The PBS Board of directors and company founder Ian Carter released a statement on Tuesday, acknowledging the impact on people’s lives and livelihoods.
They claimed that the company had always prided itself on getting the job done and that going into administration was a gut-wrenching decision.
The statement mentioned that the company had secured, not abandoned, the current projects to prevent further expenses.
They had taken this step to negotiate better outcomes with clients to benefit creditors.
The company also cited soaring material costs, labour and material shortages, extreme weather events, and wars as the reasons for its collapse.
They added that they were the latest, but not the last construction group, to buckle under the weight of a broken industry that needs urgent reform.
Staff members were informed of the company’s collapse on Monday; some had been with the business for 25 years. There is more news to come on this issue.
»PBS Building goes into voluntary administration«
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