Major Victorian company collapses owing millions

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A Victorian company in the construction industry has collapsed owing creditors more than $20 million, and leaving 150 staff members out of a job.

Richstone Group Pty Ltd, the state’s largest privately-owned plumbing contractor, last month announced it was entering voluntary administration and restructuring.

Documents lodged with the the Australian Securities and Investments Commission , obtained by news.com.au, show the company owes upwards of $22 million to creditors. In June, Richstone’s Director Shannon Egglestone said the firm was entering into a restructure due to “circumstances beyond our control” that had devastated the company.

“We have been undergoing a restructure so that we can continue to support our staff, customers and suppliers. “Material costs against fixed priced contracts, construction industry inefficiencies due to the worldwide pandemic and cuts to credit lines,” he said.

 

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