The family-owned business, which describes itself as “the most experienced and trusted home improvement company in Adelaide and South Australia”, offloaded its ongoing contracts and transferred staff to the newly-created WPC Home Improvements in late September.
The remaining corporate entity – formerly known as Quality Roofing Services – was placed under external administration last week, according to documents published by the regulator, ASIC.
The remaining corporate entity – now only referred to by its company number – retains the cash from the sale along with some assets and significant liabilities.
Adelaide administration firm Clifton Hall was appointed to take over the corporate entity on Thursday last week.
Administrator Tim Clifton told InDaily this morning the company formerly called Quality Roofing Services owed creditors, including a variety of local building contractors, more than $1 million.
“A whole lot of people (are) owed money,” said Clifton.
“It’s more than $1 million (owed to) a variety of trade creditors.
“I have got a company that’s insolvent.”
He said that the director of the company, Vincent Barry, explained that Quality Home Improvements had suffered from the general downturn in the local construction industry.
“The director tells me… the building industry is just tough,” said Clifton.
“You need a certain level of turnover to break even.”
Clifton said that he would be investigating whether the sale to WPC was good value for creditors.
If not, he said potential options included taking legal action against Barry or against WPC to recover creditors’ funds.
InDaily contacted Quality Home Improvements and an employee sent us a letter Barry has written to customers since the sale to WPC, describing it as “exciting news”.
They did not provide any other comment.
“I would like to point out that my reasoning for this change is to get all our projects promptly and expertly installed, achieve the best possible outcome for all our clients, continue strong relationships with our suppliers and maintain ongoing employment for our loyal and valued employees,” the letter reads.
“All our existing contracts are to be transferred to WPC (Home Improvements) and WPC HI have experienced staff with additional years of building works expertise to ensure a smooth transition.
“You will still get the same quality goods from the same quality suppliers, you will be still be dealing with the same company representative, the same company project manager and your project will still be installed by our existing expert building crews and WPC HI will be trading from the three existing SA Quality Home Improvements display centres six days a week so you will always have great access to our staff for ongoing service.”
Another copy of the same letter, seen by InDaily, is dated 30 September – the day of the sale.
SA Quality Home Improvements has three display centres – in Clarence Park, Pooraka and Port Pirie.
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