Building company Cubitt’s Granny Flats and Home Extensions has announced it entered voluntary administration on Tuesday.
The family-owned business said the owners dipped into their personal assets to complete projects and honour contracts for several years before cutting their losses.
The business, which had been operating for 30 years in NSW and ACT, called the decision “devastating”.
Stream your local 7NEWS free on 7plus
Staff were made aware of the situation in a “very emotional meeting” on Tuesday, as RSM Australia Partners administrators Richard Stone and Brett Lord were appointed to find a buyer.
“This morning, we informed our loyal and hard-working staff in person where possible and remotely via video, some of whom have been with us for more than 25 years, of our decision,” Cubitt’s said.
“We never thought we’d find ourselves in a position where we’d be saying goodbye to our staff, our business, and the many steadfast customers and suppliers who have supported us. It has been the toughest of days.
“We will be working with the administrators to provide everything they need to achieve the best outcome they can for Cubitt’s, and its staff, customers, suppliers and other creditors.”
Bank lending conditions, supply prices, tax changes, insurance prices, COVID recovery and lengthy weather events resulted in losses the company said it was unable to come back from.
“Cubitt’s company has suffered more than it can shoulder,” it said.
“Cubitt’s made the decision in 2021 to honour fixed price contracts and not pass on price rises to their customers, bridging the shortfall and completing projects with significant loans to the company by the owners, Ian Cubitt, Kim Cubitt and Kate Cubitt, using their personal assets.”
The company was established in 1994 alongside owner Ian Cubitt’s carpentry apprenticeship program, which trained over 120 carpenters in 30 years.
Another female carpentry apprenticeship program established by Ian two years ago has also allowed six female carpenters to qualify so far.
The team described the company as a “truly special and iconic business, building affordable housing that Australians can be proud to live in”.