WA builder Simsai Construction goes into liquidation owing $4.5 million

Home builder Simsai Construction has gone into liquidation after a dispute with the Australian Taxation Office over debts nearing $4.5 million, it has been reported.

The Perth-based company was working on approximately 100 houses when the business entered administration in early November.

The company ran brands First Home Buyers Direct, Express Homes WA and Multi Develop 360.

Administrators said the company’s tax debts had started to accrue from June 2018 and by October 2022, home indemnity insurer QBE was raising concerns about Simsai’s recent earnings and its future.

Administrators say the business could have been insolvent as early as July 2021, noting an insolvent trading claim of $4.2m may need to be investigated, the West Australian reported.

Administrators also revealed the company had borrowed $230,000 on a three-month high interest loan in June 2023 to keep its doors open. Fees on that individual loan had increased to over $100,000 by November.

Additionally, up to $2m could be owed by three former Simsai directors to the business.

Administrators indicated directors had been willing to repay outstanding debts, possibly through selling their personal homes.

Simsai’s directors believed the company’s collapse, like so many others in Australia this year, was brought on by materials shortages and rising costs, the pandemic and “unreasonable director-related transactions”.

It comes after South Australian building company Wake Concepts collapsed in September, leaving a slew of unfinished projects and about 100 workers out of a job.

The business announced it would be “wound up” and Anthony Phillips from Heard Phillips Lieberenz appointed as its liquidator.

A statement released by Mr Phillips said his priority would be to ensure Wake Concepts employees were paid, before investigating what led to the company’s collapse.

A few weeks later, River Dale Building Group Pty Ltd, which traded under the name Chatham Homes, went into voluntary liquidation.

All 16 employees lost their jobs on the spot at a company-wide meeting and Chatham Homes has now officially ceased to trade.

Chatham owes around $2 million to around 200 creditors, most of them tradies, according to preliminary findings.

“The business was operating but the business had basically run out of cash,” Mr Schwarz told news.com.au.

“It’s a victim of the industry unfortunately, all the usual pressures, increasing costs, delays, supply constraints.”

In October NPM Group, National Projects and Maintenance, went into voluntary administration.

The business specialised in construction, fit-outs, minor works and maintenance projects in the commercial sector.

NPM Group had 10 companies under its banner across NSW, Victoria, Queensland, Western Australia and the ACT.

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