HAND me a hammer, Beechwood is sold.
Yesterday, word spread of the sale as quickly as it did when builders were told to down tools on May 13, the day the company collapsed.
Beechwood Homes will be sold as a going concern to Resibuildco Pty Ltd for an undisclosed amount.
Resibuildco will be partially funded by the Cavasinni family group and Cavasinni Constructions.
Resibuildco will continue to trade as Beechwood Homes.
Shadow Fair Trading Minister Catherine Cusack, who last week held an information meeting in Nowra, said while selling was better than liquidating for creditors, it could mean Beechwood’s former owner Larry King stood a better chance of avoiding being investigated.
“Selling the company was always going to be the quickest way to get houses completed.
“It’s better for staff and creditors because they’ll still have the relationships maintained.
“We’ve made a special project out of Larry King. We want ASIC to go after him,
“We don’t know what the sale proceeds are, but at the moment the Kings are still pressing their claim as the largest creditors.
“That is an issue we are very conscious of and won’t be allowing any buck-passing on that. Fair Trading has let the tradesmen down.”
It’s those tradesmen who will now be wary when it comes to future dealings with Beechwood.
Col Cheadle from Culburra Beach, who owns a plumbing business, said the collapse that has left many tradesmen broke has forced them to reconsider their rates.
“We [tradesmen] have spent 20 years working for Beechwood and come out at the other end at a loss. They’ve squeezed us and at the end they pinched our money.
“Are we going to get the price rises promised to us for the last 10 years?
“We’ve learnt a big lesson with these pricks, they just want to rob us. I service my car and my mechanic charges me $77 per hour, Beechwood gives me $21 per hour.
“The new mob need to re-evaluate the way business is done and how they pay, they need to pay all invoices not just throw them in the bin.
“Minister Burney has to change the rules to stop these companies doing this in the future. I’ve lost $40,000 but I’ve got also got money I owe to other suppliers and people.
“I’d love to see an investigation of Larry King and so would every other tradesman.
“Australia was built on a fair go for all but that guy thinks he’s above everyone.”
Fair Trading Minister Linda Burney defended her department’s handling of the Beechwood Homes collapse.
She said it was irresponsible for Catherine Cusack to host information sessions when she did not have all the information.
What will it mean to..
Employees:
The new owner of Beechwood Homes will make offers of employment to the remaining Beechwood Homes employees.
There is approximately half of the original number of employees still employed by Beechwood.
Suppliers and tradesmen:
The new owner of Beechwood Homes has indicated that they wish to have these tradesmen and suppliers provide their services to the new operations.
Homeowners with homes under construction:
A building inspection by the new owners. The homeowners will be required to transfer their building contract to the new buyer for building works to resume.
Homeowners with construction yet to begin:
Transfer their building contract to the new buyer for building to commence..