Builder bankrupt as company owes $1.7m
The director of a company that once billed itself as Brisbane's premier home extension and renovation business before collapsing has declared bankruptcy with creditors unlikely to see any of their money, according to liquidators.
Total Lifestyle Builders Pty Ltd went into liquidation in June last year owing more than $1.7m to 89 unsecured creditors as well as the ATO.
On January 1 the company's sole director Allan Ernest Stroud declared himself bankrupt.
The Australian Financial Security Authority Official Trustee in Bankruptcy will now investigate Mr Stroud's finances.
Late last year liquidators Hall Chadwick's Ginette Muller and Marcus Watters said in a report lodged with ASIC that a dividend was "unlikely" to be paid to any creditor and urged them to write off any debt owed by the company.
It was in their view the company "may have been insolvent or likely to become insolvent from at least July 2019".
They said Total Lifestyle Builders started to incur regular monthly net losses from as far back as August 2018 but still recorded an overall profit for the year ended June 20, 2019.
However, the company made less profit and larger losses afterwards leading to an overall loss in the period up to June 18, 2020.
Mr Stroud, who was the company's sole director, and his wife Dian Patricia Stroud hold all the shares in Total Lifestyle Builders which was registered in 2004. No action has been taken by ASIC against any individual.
According to the ASIC report Mr Stroud said there were a number of reasons for the company's failure, including having rectification works on a job costing $200,000 and his health issues.
He said other issues were in his absence the company took on uncommercial projects and quoted on projects that were well below a margin of 25 per cent, resources were used to fund an employee's own projects, poor bookkeeping and being forced into hibernation because of COVID-19.
The Courier-Mail has attempted to contact Mr Stroud for comment.
Total Lifestyle Builders, previously known as Lifestyle Kit Homes, was primarily known for construction of granny flats. Mr Stroud advised that the company ceased to trade in April 2020.
Originally published as Brisbane builder bankrupt as company owes $1.7m