- Companies tied to Kwikform entered administration
- More than 650 workers are affected
Several companies connected to one of Australia’s largest construction groups have entered administration.
A total of ten companies tied to Kwikform, the Australian arm of South African company Waco International, went into voluntary administration on Monday and Tuesday.
The Sydney-based group traded as Waco Kwikform, Star Scaffolds and United Scaffolding Group.
Its main business was hiring, selling and manufacturing formwork, scaffolding and shoring in 23 locations across Australia and New Zealand, the Daily Telegraph reported.
It’s understood more than 650 staff were affected by the decision this week.
Waco Kwikform has been a long-term partner of F1 in Melbourne and provided scaffolding for the John Hunter Hospital in Newcastle.
It is unclear how much the companies owe.
They are overseen by Waco International CEO Stephen Goodburn – aged 62, CFO Dharishan Padiachy – aged 39, and Waco Australasia CEO Michael Els – aged 58.
Damien Pasfield, Melissa Smith, Kare Johnstone and Jason Preston from McGrathNicol have been appointed as administrators.
‘Waco Australasia management has been actively pursuing concurrent sales processes for a number of business units in recent months,’ they said in a statement.
‘While these efforts were promising, current market conditions and delays in transaction timing have made the appointment of Administrators necessary to ensure there is sufficient runway to conclude the processes and maximise value for creditors.’
The companies will continue to trade while administrators work to resolve the debts.
The most recent financial report, seen by the outlet, reported a total of $148.1million in revenue for Waco Kwikform and a $10.54million loss, down from a $9million profit the year prior.
Other entities in the Waco International Group are not affected by the administration.
Source: Dailymail