RSM administrators receive early interest in the purchase of family-owned cubitt's

Almost 40 parties have expressed an interest in buying Cubitt’s Granny Flats and Home Extensions which went into administration on 26 February 2024 after 30 years of family ownership.

Early buyer interest in the company was a key update company Administrator RSM Australia Partner Richard Stone provided at the company’s first creditor meeting, which was held virtually and in-person in Sydney on 7 March 2024.

More than 150 customers, suppliers and other individuals and businesses who believe they are owed money by the construction company – which built granny flats and home extensions in NSW and the ACT – attended the meeting.

Mr Stone told creditors Cubitt’s faced financial difficulties due to a range of reasons including fixed price contracts, record levels of material costs, and insurance prices.

``Our investigations are ongoing, however, to date we have identified more than $1 million in assets and about $6.8 million in liabilities,’’ he said.

"``We appreciate this is an incredibly difficult and uncertain time for everyone associated with the company – customers, staff, sub-contractors, and suppliers – however we are working as quickly as possible to find a quality purchaser to take over this business and to re-engage workers and recommence projects. That is our primary objective at this point in time."

``We advertised the sale of the business within three days of being appointed to take control of Cubitt’s. The sale includes more than 100 housing contracts that were either underway or ready to start (at the time of the Administrators’ appointment); four showrooms located in Sydney, Newcastle, Wollongong and Canberra; vehicles and equipment; and the business name,’’ he said.

``To date we have received 38 expressions of interest, which reflects market confidence in the quality of the business.”

Expressions of interest to purchase the company close today (8 March 2024). Interested parties should contact RSM via [email protected] for further details.

Mr Stone also updated creditors on their initial investigations into the financial records of the company.

``To date we have identified 373 creditors who are owed approximately $6.8 million. However, these figures may change as we continue our investigations,’’ he said.

``"The Cubitt family are working alongside the Administrators as are key staff members who have been retained to provide continuity and support during the Administration process.’’

Creditors have been advised that the Administrators will lodge their first statutory report on the company’s affairs with the Australian Securities and Investments Commission (ASIC) by 5 April 2024.

FOR MORE INFORMATION

Any creditors affected by the administration of Cubitt’s should contact RSM via email at [email protected].