A builder who specialized in demolishing old houses is going bankrupt with more than $3 million in debt and 45 unfinished houses. His permit has been revoked.
Ansa Homes, a Sydney-based family business founded in 2006, has gone bust after the Building Commission NSW revoked its building licence for 60 days following customer complaints about defects.
Shareholders of the ailing company appointed bankruptcy firm Jirsch Sutherland on Tuesday after the state government agency suspended trading, leading to the layoff of 20 builders.
The five office workers had been working from home since June after their licenses were revoked. They were performing administrative tasks until the liquidators were appointed.
Ansa Homes stopped building homes two months ago. A spokeswoman for the liquidator told Daily Mail Australia the company owed more than $3 million to creditors, including the taxman, because 45 homes were still under construction.
“The main reason was the suspension of the building permit, which led to cash flow problems,” she said. “Staff were laid off.”
The NSW Building Commission initially revoked its permit in June.
But on August 20, Mark Maloney, the managing director of Ansa Homes, was asked to ‘indicate’ why no disciplinary action should be taken against him.
A new 60-day suspension was imposed, which would not be lifted until October 19.
A builder who specialized in demolishing old houses and replacing them is being liquidated after his license is revoked
“Building Commission NSW is closely monitoring ANSA’s ongoing insolvency proceedings,” a state government spokesperson told Daily Mail Australia.
‘A notice of hearing provides an entity or individual with the opportunity to present arguments as to why they believe no disciplinary action should be taken against them.
“The most recent 60-day suspension of the company’s contractor license and Mr. Maloney’s contractor license replaces the previously issued suspensions.”
When a business goes bankrupt, owners can file a claim with the Home Building Compensation Fund.
The homebuilder, based in Edmondson Park in Sydney’s southwest, was not taking calls from customers on its main sales number on Thursday.
Disgruntled customers have anonymously posted a series of complaints on Reddit.
“We had a demolition house rebuilt with Ansa, it was a nightmare,” the report said.
‘If you have a problem with Ansa, stand up for yourself and don’t listen to their nonsense and gaslighting.
‘Contact the building committee as soon as possible. Don’t wait, take action immediately.’
Ansa Homes positioned itself as a builder of ‘architecturally inspired, custom-designed homes tailored to your family’s needs’ and as a specialist in demolition and reconstruction projects.
Ansa Homes, a family-owned business founded in 2006, has gone bust after the New South Wales Building Commission revoked its building permit for 60 days following customer complaints about defects
“Building with Ansa Homes offers you a level of certainty that is hard to find in today’s uncertain construction market,” the website states.
Ansa Homes has also promoted granny flat designs extensively. The company took advantage of the 2009 New South Wales law change that allowed granny flats to be added to homes in blocks larger than 450 square metres.
Mr. Maloney appeared in a 2019 video promoting the idea of grandparents living together completely separately from their grandchildren.
“They keep everything very separate: they have a separate barbecue area, a separate outdoor area, separate kitchens, separate bathrooms,” he said. “And if they need help, you’re right there.”
The Australian Securities and Investments Commission announced on Wednesday that its general meeting the previous day had resolved to liquidate Ansa Homes and appoint Jirsch Sutherland partners Peter Moore and Andrew Spring as liquidators.
“Peter and Andrew are currently investigating how many homes had been completed and/or were under construction by the company at the date of their appointment,” the liquidator’s spokeswoman said.
The company’s assets are being sold in an effort to repay creditors, including customers who had homes under construction.
The liquidation took place after the increase in construction costs had subsided.
CEO Mark Maloney appeared in a 2019 video promoting the idea of grandparents living with their parents completely separated from their grandchildren
Although construction companies account for a quarter of bankruptcies, construction costs rose by just 2.6 percent in the past fiscal year, a level well below inflation and the lowest annual increase since 2002, according to the CoreLogic Cordell Construction Cost Index.
The initial post-Covid surge in construction costs coincided with the Reserve Bank raising interest rates thirteenfold in 2022 and 2023.
The most aggressive pace of monetary tightening since the late 1980s has taken the cash rate to 4.35 percent, the highest level in 12 years. Reserve Bank Governor Michele Bullock this month decided not to offer borrowers any relief before Christmas.
Daily Mail Australia also contacted Mr Maloney and Icare, a New South Wales government agent that handles building and home insurance.
Ansa Homes customers are advised to call Building Commission NSW on 13 27 00 for assistance and support