By CAM LUCADOU-WELLS
ABOUT 250 creditors including tradies, suppliers, customers and employees are owed millions of dollars as a result of the shock liquidation of Hallam-based boutique builders Botanic Homes.
The award-winning company – which advertises luxury display homes in Officer, Narre Warren North, Clyde North, Lysterfield and other parts of Melbourne – was put in administration on 3 May.
Jason Stone of the administrators PKF Melbourne said it is too early to say how much of the estimated $4-5 million of debt will be recouped by creditors.
Mr Stone said the Hallam South Road business had been taken by “surprise” by its financial demise.
There had been “really good” forward projections but the company “couldn’t get over the short-term hurdle”, he said.
“The cash flow shortage seemed to creep up on them and they were just not able to find a way out of it.”
Botanic Homes’ assets included properties ranging from land lots to complete display homes.
Many of those properties had bank loans on them and Mr Stone said that they should show a cash “surplus” when they were sold.
PKF Melbourne was also dealing with a number of interested parties to acquire the business assets.
Mr Stone said there didn’t seem to be any impropriety involved in Botanic Homes’ fall but that would be part of his ongoing investigation.
Directors Craig Garvey and Robert Bender could be personally pursued for some debts, having made personal guarantees for some supplier debts and other items, Mr Stone said.
Botanic Homes’ website has been stripped of content, its Facebook page taken down and its office phone on message bank.
According to testimony from former Small Business Minister Bruce Bilson – now taken down from the website – the company had employed 30 people.
It provided “strong business to dozens of service providers and trades people”.
“It takes real courage and belief to enter the market against established volume builders,” the testimony states.
“But that is what Botanic Homes did.”
Botanic Homes was founded in 2008. Its designs have won 2013 awards from Masters Builders Victoria and the Housing Industry Association.
Star News attempted to contact Botanic Homes for comment.
A first meeting between PKF Melbourne and creditors has been scheduled.
It will be held at Cliftons, Level 1, 440 Collins Street, Melbourne, from 10.30am on 13 May.
