The NSW-based housing construction company Holmwood Builders, trading as Procorp, has gone into voluntary administration.
The Procorp group has 50-plus employees an estimated 500 creditors, with offices in Sydney, Newcastle, the NSW South Coast, Southern Highlands and Albury.
Procorp has offices in Narellan, Albury, Beresfield and Ulladulla with display homes located at Oran Park, Waterford County in Thornton (Hunter region), The Elms in Thurgoona (Albury region) and Renwick Estate, Mittagong (Southern Highlands).
Hall Chadwick is assessing Procorp's business affairs, with a meeting scheduled by accountant Domenic Calabretta for Friday, November 23.
The company had 90 homes under construction, with another 50 homes set for commencement.
Cashflow problems and weaker housing market were the fundamental catalysts, Calabretta told Ross Greenwood on 2GB Money Talk.
The Procorp Group began operation as Procorp Property in Narellan in 1998, and for several years traded as a Professionals estate agency. It was founded by real estate agent Michael Everard, who teamed up with home builder Ian Tyson of Holmwood Builders in 2000.
Its marketing logo was “It’s Procorp’s No Hidden Surprises Guarantee. It means all you have to focus on, is moving in.”
It retains a property management division.
Calabretta has advised Procorp had home warranty insurance so those who had hired it to build homes could make a claim to insurer QBE. Those with homes under construction are being urged to get a quantity survoyors progress report.
The Australian Securities and Investments Commission’s annual report on corporate insolvencies, released in September, found the construction industry had the single highest number of insolvencies nationwide, making up 22.1% of the 10,000 insolvencies plus across Australia in 2011-12.
It represented double the retail industry in second spot.