Two more building companies face collapse amid national housing downturn

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Two South Australian building companies are facing collapse as pressure from the national housing downturn continues.

Two more South Australian building companies are facing collapse amid ongoing pressure from the national housing downturn.Several companies have closed and subcontractors are feeling the impactAn application to wind up Cubic Homes, based in Kilburn, will be heard later this month and JML Home Constructions, which operates the Onkaparinga GJ Gardner franchise, has closed its doors.

Roofer Justin Noble said he felt for building companies, even though the downturn had impacted subcontractors too."[I know] at least 50 people who are owed money. Just one company that's going under, they owe … I'm told, close to $700,000 across all trades." "I'm just keeping afloat … I'll probably try and do another 10 years before I do something different," he said.Shadow treasurer Stephen Mullighan said the State Government needed to address the issue quickly, with building approval values falling by 33 per cent in the past year.

 

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I am often baffled on the accountancy oversight of these companies allowing them to grow big on tight margins with often lengthy delays within negative cash flow territories

This 'downturn' can't have been the whole reason. These guys must have been on the way out already.

MinhKular Workplaces full of casuals no home loans

We need to diversify the economy, it's insane to be so dependent on construction and mining. Both these industries are cyclic and unsustainable. auspol

This is happening in SA under the “superior” economic management of state and federal LNP managers? Tell me it isn’t so!!

A sure sign accused rapist little Billy will be our next PM, 😢.

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