Mahercorp: Yet ANOTHER Aussie home building company goes into administration

Another Australian home building company has gone into administration.

Mahercorp told its customers it will enter voluntary administration but say it has ‘not collapsed’.

The construction company is based in Melbourne and is the parent company of  Urbanedge and Eight Homes.

In a statement emailed to customers, director and CEO Steve Maher said: ‘I want to emphasise that Mahercorp has not collapsed and is not in liquidation,’ he said.

‘My intention is to work with the administrator on a plan that I hope allows us to restructure the business, creating a more sustainable footing and to complete your home.

‘It’s no secret that all builders are facing unprecedented challenges right now. Building costs are skyrocketing — materials and labour costs are at record levels and rising inflation is putting huge pressure on builders.

‘To ease the strain of these cost increases, for some months now we have been renegotiating our trading terms with our suppliers and insurers. Their support to date has helped us manage spiralling costs.’ 

He explained that entering voluntary administration was their ‘only option’  after learning that their insurer would no longer support their business. 

‘I understand this is disappointing news for you, and I want to give you an explanation about why this is happening and tell you myself what it means for your home,’ he said.

‘Preparation of your new home to go to site will be put on hold for the five-week duration of the voluntary administration. Any appointments, including contract, electrical or colours, that you have booked during this period will also be on hold.

‘Let me assure you again that I intend to work closely with the administrators on a plan to get the business back on track.’

Cor Cordis has been appointed as administrators.

The majority of their work is in Melbourne’s northern and western suburbs.