23rd April 2009

More than 60 unsecured creditors of David Reid Homes’ southern franchise on the Sunshine Coast are unlikely to see any money, the luxury builder’s liquidator said today.

 

Liquidator SV Partners said the franchise owed $415,000 to sub-contractors and suppliers and $280,000 to secured creditors.

 

The franchise, which was owned by Steve Booth and an unnamed partner, closed last month after David Reid Australia terminated its franchisee agreement.

 

The Building Services Authority subsequently suspended its licence.

 

Kawana-based DRH Australia has taken over the southern franchise but has not made an offer to pay Mr Booth’s bills.

 

It has, however, taken over the construction of three of the five incomplete homes on Mr Booth’s books and says it is working with the Building Services Authority to try to get the remaining two homes finished.

SV Partners' Sunshine Coast Manager Craig Rosenberg said “It’s looking unlikely (that the unsecured creditors will get paid), but we’ll have a clearer picture when our investigation is finished.”