A building company has collapsed into liquidation with 50 homeowners across melbourne and regional Victoria impacted.
News.com.au can reveal that River Dale Building Group Pty Ltd which traded under the name Chatham Homes went into voluntary liquidation less than 24 hours ago.
Andrew Schwarz of insolvency firm AS Advisory was appointed as the liquidator around noon on Monday.
All 16 employees lost their jobs on the spot at a company-wide meeting and Chatham Homes has now officially ceased to trade.
Chathom 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.”
News.com.au understands the building firm did not take out insurance for a handful of customers which means they are set to lose their entire deposits without government intervention.
School teachers Louise and Brett Strachan have been devastated to learn of the company’s demise, especially because domestic building insurance was not taken out in their name.
“We’re going to lose $32,000…