Hundreds of thousands, 30 businesses hit by company collapse – Noosa News

UPDATED: THE collapse of Ri-Con Contractors this week a financial hole at least $540,000 deep in the region, a liquidator's report revealed.

Thirty businesses and individuals around the region were owed money when the Sunshine Coast-based builders moved into liquidation on Monday.

Brisbane Electrical Contractors and Engineering was the hardest hit, with the liquidator estimating the business was owed $236,000.

O'Brien Plumbing Gympie was also due $116,000, and owner Tim Bothams said this week the actual figure is actually $41,000 higher.

Tim Bothams says Ri-Cons debt to his business was almost $160,000.

Cooroy Engineering was due $36,000, Evans Painting Contractors was owed $33,000, CPM Engineering was owed $25,000 and Cardale Concrete Pumping was owed more than $25,000, the report revealed.

RELATED

* Gympie council says it was told subbies paid

* Gympie subbies in lurch as another builder goes bust

Campbells Truck and Bobcat and Landscaping, Nicks Readymix and Quarry Boys Gympie were owed between $5000-$17,000 each.

All Areas Rendering, CavSheds, CBD Corporation, Cooroy Sheet Metal and Tank Work, Evan's Painting, Fishy's Earthmoving, Gympie Blinds, Gympie Garage Doors, Gympie Landscape Supplies, Suncoast Roadmarking, Superior Skip Bins, The Water Man and Tim Spring Transport were also owed money.

Ri-Con worked on the Kilkivan Equestrian Centre.

The amount owed to 10 of the 30 businesses and individuals was still to be confirmed.

Liquidator Paul Nogueira said Ri-Con's director "has advised the company and its business began to experience financial difficulty about December 2019, following a failure to secure new projects for an extensive period of time".

"The reduction in projects severely affected the company's cash flow, resulting in its current insolvent position.

Inadequate working capital, continued trading losses and a downturn in the industry and economy were the given reasons for Ri-Con's insolvency, Mr Noguiera said.

Along with its Sunshine Coast office, Ri-Con had offices in Darwin and Broome.

More than 400 creditors were owed money by Ri-Con when it shut.

* The story has been updated to reflect an additional Gympie business on the list.

See the article here:
Hundreds of thousands, 30 businesses hit by company collapse - Noosa News