Major construction company plunges into administration – in business since 1953 | World | News
A major construction firm has gone into voluntary administration, with more than 650 positions under threat. Kwikform, the Australian division of Waco International, is among the country’s largest suppliers of scaffolding and formwork.
About 10 organizations affiliated with Kwikform went into voluntary administration on Monday and Tuesday. The Sydney-headquartered group operates under the names Waco Kwikform, Star Scaffolds and United Scaffolding Group and operates from 23 sites in Australia and New Zealand.
Announcing the move this week, management said it was forced by broader market pressures.
Administrators from McGrathNicol have been appointed to oversee the proceedings, with the businesses continuing to operate while alternatives are assessed. McGrathNicol’s Damien Pasfield, Melissa Smith, Kare Johnstone and Jason Preston have been appointed as administrators.
In a statement they said: “Waco Australasia management has been actively pursuing simultaneous sales processes for a number of business units in recent months.
“While these efforts are promising, current market conditions and delays in transaction timing have made it necessary to appoint Administrators to ensure there is sufficient pathway to finalize processes and maximize value for creditors.”
Waco Kwikform has served a vital function in major initiatives including providing scaffolding for infrastructure and events such as Formula 1 in Melbourne and hospital developments in New South Wales. Other parts of the broader Waco International Group will not be affected by the administration.
They are led by 62-year-old Waco International CEO Stephen Goodburn, 39-year-old CFO Dharishan Padiachy and 58-year-old Waco Australasia CEO Michael Els.
The group’s latest move was reportedly due to the ongoing financial crisis. The latest accounts revealed a turnover of around $148 million (£110 million) and a loss in excess of $10 million (£7.47 million); This is in stark contrast to the profits made the previous year.
