Cavalier Homes Geelong collapses with 'lots of tradies' owed
- More than 40 creditors owed money
- Business owed more than $687,000 in debt
- READ MORE: Staff at construction company sacked over Zoom
A building company that was a part of major Australian construction giant Cavalier Homes has collapsed with at least $680,000 in debt.
Station 293 Pty Ltd, which was set up in Victoria in 2015, plunged into liquidation on Friday.
The home builder traded under construction firm Cavalier Homes Geelong and Nathan Downing Builders.
Cavalier Homes Geelong is one of the 19 franchises operated by major building operator Cavalier Homes.
Tradies have been left out of pocket after building firm Station 293 Pty Ltd went into liquidation last Friday (pictured stock image)
Liquidator Clifford Sanderson has been appointed and has been contacted by more than 40 creditors, news.com.au reported.
He has been told by the director, Nathan Downing, that about $687,000 is owed and that only two projects were active at the time of the business' collapse.
'Normally it turns out to be more than the director said initially,' Ms Sanderson told the publication.
Daily Mail Australia contacted Mr Sanderson and Mr Downing for further comment.
The collapse of Cavalier Homes Geelong has not affected staff employed by the business, however Mr Sanderson said 'lots and lots of tradies' along with a major bank and the ATO are listed as creditors.
Cavalier Homes Geelong had been in business since 2017.
The Geelong branch of Cavalier Homes no longer appears on the firm's website.
The business attributed their collapse to tough economic conditions and limited financial assistance from banks.
Cavalier Homes Geelong (pictured) collapsed with at least $680,000 in debt
According to their website, Cavalier Homes are 'affordable home builders' who are 'dedicated to providing quality without the hefty price tag'.
The collapse of Station 293 Pty Ltd comes after construction firm Main Facilities Pty Ltd, plunged into administration last Wednesday.
Workers at the company were informed over Zoom they had all been sacked, after the business collapsed owing $7million to creditors.
A massive 2,349 construction companies went under in Australia over the past year, as the industry continues to struggle through a period of high inflation.
The RBA kept interest rates on hold at 4.35 per cent on Tuesday as Aussies and business continue to battle the ongoing cost of living crisis.
A Cavalier Homes spokesperson told Daily Mail the the business had been struggling for some time due to mounting costs.
'Due to recent widespread building industry cost escalations Nathan's business has been unfortunately forced to go into voluntary liquidation,' the spokesperson said.
'Despite our efforts trying to assist with Nathans two customers and effected trade partners we deeply empathise with all effected parties.'
George Bancs (pictured) owns construction company Main Industries which recently fell into administration
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