Simonds Homes Closes their doors through lack of demand for their homes
Melbourne-based residential builder Simonds Homes has announced the immediate closure of its Queensland operation, blaming the worsening economy and a slump in demand. Others say that Simonds Homes have only themselves to blame, as their home designs and service were not competitive in Queensland.
Speculation Simonds Homes is going under
Dozens of contract workers, including estimators, draftsmen and sales staff,
were today told to stay at home amid growing speculation the business had "gone
under".
However managing director Gary Simonds rejected suggestions of financial trouble
and assured existing customers their homes would be built.
Mr Simonds said the shock decision was based solely on dwindling demand for new
homes and the forecast for continued economic uncertainty.
Sales of new homes in Queensland dropped by 10.1 per cent in November, despite
the $21,000 first-home buyers' grant the Federal Government is offering for new
properties until June 30.
The rest of the national [Victorian] company will continue to operate as normal,
Mr Simonds said.
"We have decided not to take anymore orders in Queensland and we are scaling
back our business there because of economic times," Mr Simonds said.
A small skeleton staff will complete work on the last of Simonds contracts in
the south-east in the next six to nine months.
"We will (also) be there to service the maintenance of the warranties for the
periods we are obligated to," he said.
Mr Simonds admitted he had considered withdrawing from Queensland for some time,
but defended the short notice given to contract staff.
"They would've been drafts-people ... estimators, sales people especially ...
because we don't need (them) anymore."
Queensland's economic outlook is unlikely to improve in the short term, Mr
Simonds said, and the company may never return.
Housing Minister Robert Schwarten said the Building Services Authority had
contacted the company and been assured it was not entering into administration.
"The company directors advised the BSA that they plans to complete all existing
building contracts and honour ongoing contractual warranty obligations," Mr
Schwarten said.
Simonds Homes told the BSA its product did not suit the Queensland market, he
said.
Unpaid Wages, Earnings and Entitlements
Have you worked for Simonds Homes Queensland and feel you have been duded? That is not been paid your full wages earnings and entitlements? Have you worked for Simonds Homes in Sales and not been paid for the time you were at Simonds, even if you were on a retainer against commission? We want to here from you.
Have you built a home home with Simonds and not been happy with the work, or finished home? Contact us.
Simonds Homes QLD Unpaid Sales earnings
Please contact Rick Adlam at radlam@mrmortgage.com.au if you have not been paid as a Sales consultant.
Simonds Homes QLD Unpaid Contractors
Please contact Rick Adlam at radlam@mrmortgage.com.au if you have not been paid as a Contractor.