New South Wales builder Cosmopolitan Construction in liquidation

The downturn in the construction industry has claimed yet another victim, with New South Wales-based housing firm Cosmopolitan Constructions entering voluntary liquidation.

The collapse comes as the construction and engineering industries are suffering their worst insolvency figures in years, as low consumer confidence keeps prospective property buyers out of the market.

In a statement on its website, Cosmopolitan said that during the last year it had remained profitable, but recently it has been slammed with “significant margin erosion” in its productions division.

Christopher Darin and Nick Malanos of Worrells were appointed as joint liquidators – both were contacted this morning but neither were available for comment prior to publication.

Cosmopolitan updated its statement over the weekend, informing customers the liquidation will only affect the New South Wales division of the business and that the Queensland division is owned and operated separately.

The NSW Fair Trading Office has been made aware of the situation and has set up a page here in order to inform customers about their rights, especially those who are currently building homes with Cosmopolitan.

In the company’s statement, director Perry Condoleon wrote that staff have been terminated but entitlements will be paid out in due course, and also said that most clients with works in progress should be covered with home warranty insurance.

“The Director is deeply regretful to all suppliers and tradespeople, who have been loyal, hard working and supportive of Cosmopolitan Constructions for many years,” Condoleon said.

The collapse comes as the construction industry suffers due to the ongoing downturn, with many building parts and construction companies either entering receivership or administration.

Although some commentators believe the latest rate hike should give the property market a boost, insolvency figures suggest it may be awhile before any benefits trickle down. So far this year has been the worst for collapses on record, with anecdotal evidence suggesting the damage is being felt mainly in construction and building.