By CAM LUCADOU-WELLS
A DEVASTATED tradie has said he is owed about $200,000 after working for Botanic Homes right up to the day of its liquidation.
The south-east-based plasterer, who doesn’t wish to be named, said he was even assured of the company’s financial viability on the day it folded on 3 May.
He is among an estimated 250 unsecured creditors, including customers and tradie-contractors, who are owed about $5 million by the builder.
In 2014-15, Botanic Homes turned over $50 million, built 150 homes and employed 50 staff, according to its administrators.
“They must have known at Christmas things weren’t great,” the plasterer said.
“They should have started saying something to us then.
“How they could do this to other human beings… it’s hurt people massively.”
The tradesman remains unpaid for “big jobs” at six of the award-winning Hallam business’s projects in April and May.
In the wash-up, the tradie may get about 20 cents in the dollar from receivers PKF Melbourne.
He said he was hurt but not bankrupted.
“It means I’ve basically worked the past two years for free.
“But it’s not just the money owed, it’s the 200 homes a year of work.”
Several days before liquidation, he had called Botanic Homes after hearing “whispers” of its cash-flow problems.
“They said ‘we’re financially sound’. I took their word for it and kept working on their jobs.”
He rang again on 3 May. A Botanic Homes director said he’d get money to the tradie that day.
“’Everything will be fine. We’re working through it’,” the tradie was told – not knowing that receivers PKF Melbourne were being appointed that day.
The tradesman said he was “devastated” to hear about the liquidation the next day.
“It was a big shock. I’d worked about three years with them and couldn’t knock them – they always paid on time.
“It’s going to take a long time to sort out because, apparently, it’s so messy.”
As for how this happened, the tradie thinks the boutique-home builder got “too big too quickly” – citing its lavish Hallam factory that opened last year.
“It’s either bad management or money has gone missing.”
PKF Melbourne administrator Jason Stone said about 30 customers, who had put down deposits with Botanic Homes, had made claims to the Victorian Managed Insurance Authority.
About a further 20 customers were expected to make similar claims.
He said PKF’s investigations into the behaviour of directors Craig Garvey and Robert Bender were continuing.
“It seems to be that Botanic Homes geared up expecting to have a big year and didn’t get anywhere near the expected job-starts.
“It had invested a lot of capital into display homes and a display home at their leased premises, which drained the cash situation.”
