Liquidators have moved on another long-standing Townsville family-owned business that has been manufacturing, supplying and installing building products for 30 years after collapsing with close to $2 million in debts.
Nu-lite Glass and Aluminium has been experiencing significant reductions in business activity and increased competition, causing a dramatic reduction in the company’s cash flows over the past few years.
The family had no option but to appoint liquidators BRI Ferrier on 27th April as any hope of trading out of the debt was unfeasible, despite feeding the company with their own resources during these tough economic times.
In the midst of more unfavourable construction data coming from the banking sector, Townsville’s businesses in the building industry are feeling the pain. A Bank West assessment of the industry found that; “Housing construction revenue is anticipated to fall by 6.2 per cent in the year ending June 2017”.
“Mining regions will also see reduced housing construction, as the population in these regions falls. Multi-unit apartment revenue is expected to fall by 17.3 per cent over the same period, as new construction over the previous five years has exceeded demand requirements”, Bank West Executive General Manager, Sinead Taylor reported.
The family-owned business has been supplying domestic and commercial customers in Townsville and as far out west as Julie Creek, hundreds of kilometers from Townsville, with glass, aluminum doors, windows, shower screens, wardrobes, mirror, security screens ever since the mid-1980s.
The business offered free quotes and was always willing to provide free advice and guidance to hundreds if not thousands of local businesses and residents. For many years, the company’s branding and operations could be seen by locals driving by their prominent warehouse located at 125 Dalrymple Road, Garbutt.
The company employed 16 permanent and casual staff who are expected to receive most of their entitlements under the Federal Fair Entitlement Guarantee scheme, such as wages and annual leave, but with limited assets to receive superannuation disbursements, Mr. Humphreys from BRI Ferrier reported.
Any other unsecured creditors are unlikely to get anything from the collapse. Widespread failures in the building industry are not occurring according to, the Housing Industry Association report to The Mercury – www.themecury.com.au).
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