Failed Queensland builder owes more than $11 million

The construction firm collapsed last month amid soaring materials costs and labour shortage

Failed Queensland builder owes more than $11 million

A Queensland construction business that collapsed last month owes subbies and other creditors more than $11 million.

A report lodged by liquidators FTI Consulting with the Australian Securities and Investments Commission TUesday said that Lanskey Constructions Qld Pty Ltd had 282 unsecured creditors, The Australian reported. Those creditors, including the Australian Taxation Office, suppliers and subcontractors, are owed more than $11.2 million.

FTI Consulting’s Ben Campbell and John Park were appointed to liquidate the company when it collapsed last month. They said the liquidation did not impact the other entities in the Lanskey Construction Group, The Australian reported.

“The liquidators will seek to manage the affairs of the company in a manner which maximises the outcome for its creditors,” Campbell and Parks said at the time. “There are currently no staff directly employed by the company. Creditors of Lanskey Constructions Qld will be updated in due course.”

Lanskey was founded in 1986 by Paul Lanskey and Ross Williams. The company is involved in large commercial projects throughout Australasia and has offices in Brisbane, Sydney, Melbourne, Perth and Auckland, The Australian reported.

Lanskey Construction Qld held a category 5 licence from the Queensland Building and Construction Commission. The QBCC suspended that licence last month due to the company failing to meet minimum financial requirements.

Read next: Another Queensland builder collapses

Lanskey Construction Qld is just one of several builders that have found themselves flattened by a perfect storm of rising material costs and labour shortages. In the past 12 months, major builders including Condev, Probuild, and Privium Homes have all collapsed. Queensland-based Oracle Group failed earlier this year owing $14 million to creditors and leaving nearly 300 homes unfinished.

The liquidation of Lanskey Homes Qld is proceeding as one of Australia’s top builders ponders its own future. The Simonds Group, which ranked seventh in the Housing Industry Association’s list of largest home builders this year,  is considering a capital infusion to help it weather the challenging construction environment, The Australian reported.

In September, SImonds announced that it would cut 9% of its workforce after posting a net loss of $9.7 million in the year to June 30, the publication said.