Building supplies firm goes under owing $4.8m
Administrators have been appointed to a Brisbane building supplies business owing creditors almost $5m but there are hopes the company can survive.
Hemmant-based Bayside Gate Frames, which manufactures and supplies concrete sleepers and fencing materials, is continuing to trade while the administrators investigate a rescue plan.
The company traded under the names Bayside Fencing Products, Direct Factory Outlet Concrete Sleepers, Landscaping And Building Products and Concrete Sleeper Retaining Walls Brisbane.
Hamilton Murphy partner Stephen Dixon said the business had been hit by the COVID-19 shutdown, rising costs and an expensive process of bring manufacturing of concrete sleepers in-house.
Mr Dixon told creditors in a report lodged with ASIC that the company owed approximately $4.88m, including $392,000 to the Australian Taxation Office.
He said he was keeping the business open while he investigated either selling it or restructuring the operation. Bayside Gates director Craig Simmons was unavailable for comment.
Mr Dixon said that the manufacture and sale of concrete sleepers remained profitable, but he was looking at selling the fencing operation. He said he had reduced the number of employees, improved production processes and had discussions with financiers.
The company's accountants would prepare financial projections for the next 12 months and a consultant was reviewing the efficiencies in the production process.
Bayside Gate was one of 44 Queensland firms entering either liquidation or administration in March, a 22 per cent increase on the 36 insolvencies in February, amid the end of JobKeeper subsidies and debt moratoriums.
Three locally-based building firms went under this month, reflecting continuing tough conditions in the sector.
Brisbane-based GW Civil Contracting collapsed owing creditors $3.1m after COVID-19 delayed projects and it lost its JobKeeper eligibility.
Gold Coast-based Amphibia Engineering, which specialised in constructing tiny homes, went bust leaving a string of angry customers behind and estimated debts of $1m while Newstead-based Arcren Building was placed in liquidation with Bill Robson, of Robson Cotter Insolvency Group now in control of the firm.
Originally published as Brisbane building supplies firm goes under owing $4.8m