A Victoria homebuilder has filed for bankruptcy, leaving more than 100 homeowners in limbo as construction work ground to a halt. It comes just weeks after the company said it was “thriving” and projects were “progressing brilliantly.”

Grandeur Homes was placed into external administration on Friday, with Sam Kaso and Daniel Juratowitch of property consultancy Cor Cordis appointed as administrators. They confirmed that building work would cease as part of the voluntary administration process.

“We have commenced an urgent review of the financial situation of Grandeur Homes and are working with the parties to explore the possibility of developing a proposal for a restructuring of the business,” they said in a statement shared Yahoo Finance.

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Administrators admitted that some homeowners had difficulty obtaining information about the completion date of their projects.

“We understand that our nomination affects 108 homeowners. We have been informed that some of them have recently had difficulty receiving updates from the company on the progress of construction works,” Kaso and Juratowitch said.

“We are already in direct contact with landlords and have set up a new, dedicated email address for customers, employees and creditors to send regular updates throughout the voluntary administration process.”

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Customers face a construction “nightmare”

Some clients say they are experiencing a “nightmare” because the construction of their dream home has stalled and they have no information about when it will be completed.

One client, Karishma Seechurn, said she was “very stressed and upset” by the news, having previously booked with Snowdon Developments in 2020 before it went bust.

The story continues

She signed a $349,000 contract with Grandeur Homes in March 2023 and claimed her project was still in the construction phase. In the meantime, she said she was stuck paying the mortgage on the unfinished home.

“I have electricity and water bills and my monthly mortgage payments on my house and interest on my building work are significantly higher,” she told news.com.au.

“I was sitting in the bank with very high interest rates and on top of that there were everyday expenses.”

The company previously said it was “thriving”

Grandeur Homes has criticized reports that the company has filed to have its registration canceled. On July 15, it said the “rumors” were “completely false.”

“We are growing and our projects are developing brilliantly,” the company wrote on social media.

“Our sites are fully functional and our customers are very happy with our work. Please ignore these false claims on social media.”

The administrators said they were urgently assessing all business operations and considering all options for restructuring or recapitalising the business.

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