Alpha Building Group collapses as Melbourne builder goes bankrupt
A major construction company that built homes across Melbourne has gone bankrupt, with $3.5 million in debt.
Alpha Building Group Pty Ltd went into administration last Thursday, laying off all its staff and now leaving ten clients with unfinished homes.
The company is now in the hands of administrator Brent Morgan of insolvency firm Rogers Reidy, who said 100 creditors are owed a total of $3.5 million.
Alpha Building Group Pty Ltd went into administration last Thursday, laying off all its staff and now leaving ten clients with unfinished homes
Mr Morgan said the company's demise was due to rising costs of labor and materials, government taxes and a lack of profitability. news.com.au reported.
The company had seven employees in June last year, but went under with only one employee, with family members of the owner also lending a hand.
The company's website no longer exists, while its phone number goes straight to voicemail telling callers it is “closed for the holiday season.”
One father of three claimed he had already paid Alpha Building Group $350,000 for a $1.8 million home and all he had left was a slab of concrete.
According to the company's LinkedIn, it's a “culmination of passion to make your custom home vision a reality.”
“Custom design and construction doesn't have to be overly complicated and at Alpha we strive to produce high-quality, custom-designed homes that capture the hearts and imaginations of our customers, while achieving realistic budgets and construction timelines,” said the description of the company.
“Alpha's dedicated team operates from a position of experience and care, allowing us to provide sound advice on development and construction projects across Melbourne.”
Alpha Bouwgroep was founded in 2004.
More to come