After 60 years, a home builder goes out of business

After 60 years in business, Collier Homes, a massive residential builder, has gone into liquidation, leaving many in shock. The Australian Securities and Investment Commission confirmed the closure, with liquidators appointed to handle the process.

Founded in 1959 by Raymond McCarthy, Collier Homes has changed ownership several times over the years. The brand assets were most recently sold in 2016 to the present owner, Dario Amara, a second-generation builder with over 40 years of experience. In a post on the company’s website before the ASIC announcement, Collier Homes acknowledged the challenges faced by the industry since the Covid-19 pandemic struck, citing supply chain shortages, delays, and labor constraints leading to unpredictable cost escalation.

Unfortunately, Collier Homes is not alone in its struggles. Thousands of Aussie companies have disappeared over the past year, with the building and construction industry being hit particularly hard. In the past year alone, 2349 construction firms have collapsed, making up almost 28% of all business collapses.

Recent collapses in the industry include Project Coordination (Australia), Cubitt’s Granny Flats and Home Extensions, and Rork Projects, among others. These collapses have left projects unfinished, debts unpaid, and employees without jobs.

As the industry continues to face challenges, experts warn that more companies may follow suit. The impact of these collapses goes beyond just the companies themselves, affecting employees, clients, and the broader economy. The future of the building and construction industry remains uncertain as companies struggle to navigate the ongoing challenges.