16 May 2016
3
A Star News Group Publication
Final bell rings on a classroom career
SPORT
Covering Endeavour Hills, Doveton & Hallam
Charis cherises MCG appearance
My plastic fantastic brain Author, advertising guru and star of the ABC show The Gruen Transfer, Todd Sampson, enthralled the audience at Wednesday's Casey Cardinia business breakfast. Mr Sampson spoke about the power of the human brain and its capacity for the extraordinary. Picture: GARY SISSONS ■ Full story page 12.
Tradies cut short By CAM LUCADOU-WELLS ABOUT 250 creditors including tradies, suppliers, customers and employees are owed millions of dollars as a result of the shock liquidation of Hallam-based boutique builders Botanic Homes. The award-winning company – which advertises luxury display homes in Officer, Narre Warren North, Clyde North, Lysterfield and other parts of Melbourne – was put in administration on 3 May. Jason Stone of the administrators PKF Melbourne said it is too early to say how much of the estimated $4-5 million of debt will be recouped by creditors. Mr Stone said the Hallam South Road business had been taken by “surprise” by its financial demise.
There had been “really good” forward projections but the company “couldn’t get over the short-term hurdle”, he said. “The cash flow shortage seemed to creep up on them and they were just not able to find a way out of it.” Botanic Homes’ assets included properties ranging from land lots to complete display homes. Many of those properties had bank loans on them and Mr Stone said that they should show a cash “surplus” when they were sold. PKF Melbourne was also dealing with a number of interested parties to acquire the business assets. Mr Stone said there didn’t seem to be any impropriety involved in Botanic Homes’ fall but that would be part of his ongoing investigation.
Directors Craig Garvey and Robert Bender could be personally pursued for some debts, having made personal guarantees for some supplier debts and other items, Mr Stone said. Star News has heard unverified stories of creditors owed up to $250,000, and a couple’s underconstruction home being “trashed” by tradies not paid by Botanic Homes. Housing Industry Association state director Gil King said consumers covered by domestic building insurance were protected. “The domestic building insurance, often referred to as ‘junk insurance’ is in place specifically for circumstances like this. “As with most if not all insurance products you hope that you never need to use it but it is comforting to know it is there when needed.”
Botanic Homes’ website has been stripped of content, its Facebook page taken down and its office phone on message bank. According to testimony from former Small Business Minister Bruce Billson – now taken down from the website – the company had employed 30 people. It provided “strong business to dozens of service providers and trades people”. “It takes real courage and belief to enter the market against established volume builders,” the testimony states. “But that is what Botanic Homes did.” Botanic Homes was founded in 2008. Its designs have won 2013 awards from Masters Builders Victoria and the Housing Industry Association. Star News attempted to contact Botanic Homes for comment.
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