Sommer & Staff Constructions has announced that it has appointed Trent Hancock of PKF Chartered Accountants as Voluntary Administrator.
The Administration of Sommer & Staff Constructions is due to the suspension of its builders licence as a result of experiencing difficulties on a building contract in the West End of Brisbane where sub-contractors are owed approximately $2.7 million.
As a result several other contracts that are in various stages of completion have also been suspended while the company’s future is determined.
Sommer & Staff has made the difficult but prudent decision to initiate the administration in an attempt to have the viability of the business and its remaining contracts assessed with the view of formulating a proposal to sub-contractors and creditors which will allow the company to successfully continue to trade in the future.
In the short term, work on the various building sites is suspended as an analysis of each contract is undertaken and negotiations are held with the various stakeholders to reach an agreement on a way forward on those contracts where possible. The management of Sommer & Staff is working urgently and constructively with the Administrator to try to find a way to restructure the business for it to survive, the company said in a statement.
The date for the first creditors meeting will be set shortly, at which time, details will be provided to all stakeholders regarding the financial and structural position of the Company.
Sommer & Staff Construction’s Dan Burley said: “This was a step that we did not want to take but given the circumstances that the business has encountered with recent projects, it is the prudent one to take.
“Over our 44-year history in Queensland, we have always held our employees, our subcontractors and our suppliers in the highest regard and tried always to act with complete integrity with all of them. We are committed to doing so through the Voluntary Administration process.”
“Many people have worked tirelessly with me and the management team over the past few months to try to find a solution to these issues. There is still a lot of work ahead of us and we will be doing everything possible working with the Administrator to find a way through for the business.”