By CAM LUCADOU-WELLS
Botanic Homes met with administrators for nearly four weeks prior to its liquidation while at the same time appearing to hire still-unpaid tradie-contractors.
The Hallam company’s director Robert Bender met with PKF Melbourne administrators about the company’s “financial position” and “insolvency options available” on 7 April, according to a PKF ‘declaration of relationships’ document.
There were four further noted meetings involving Mr Bender and PKF up until 2 May. In the final two meetings, they were joined by “seven key suppliers”.
On 3 May, Botanic Homes went into voluntary liquidation – owing an estimated 250 unsecured creditors, including tradie-contractors and customers, about $5 million.
A tradie owed about $200,000 from the boutique home-builder recently told Star News he had been hired on assurance of the company’s financial viability up to the day it folded.
He remains unpaid for “big jobs” in April and May while, unknown to him, Botanic Homes was meeting with PKF.
Customers commenting on Star News’s Facebook pages are unsure if they will get their homes or if deposits will be refunded.
A couple in Timbertop estate, Officer, had the bitter-sweet good fortune of having their problem-ridden home handed over on 24 April – just days before their home would have been in the hands of receivers.
“People say we are one of the lucky ones,” one of the owners said but they had to fight for six months to have shoddy installation of appliances, doors, carpet, tiles, a misplaced skylight and faulty electricals partly remedied.
A tradesman working on the home during April was owed $10,000 by Botanic Homes, the couple said.
They hope that domestic builder insurance will pay for other repairs.
“We were thinking how can such a reputable company be making so many mistakes?”
While in talks with PKF in April, director Robert Bender was re-registered for 12 months as an unlimited domestic builder with the Victorian Building Authority.
It’s understood the VBA criteria takes into account the quality of a builder’s work and their skills, but not their financial position.
On 26 April, Australian Securities and Investments Commission received an application to deregister an associated company Botanic Building Group.
PKF Melbourne administrator Jason Stone recently told Star News that PKF was looking into the behaviour of directors Craig Garvey and Robert Bender as part of their investigation.
Mr Stone couldn’t be contacted in the past week.
