Third GJ Gardner Homes franchise collapses leaving customers with half-built ... trends now
Another building firm has collapsed leaving customers in limbo with unfinished homes.
The third GJ Gardner Homes franchise, operated by LV Built in Tasmania, entered liquidation and closed on April 2.
'The situation with the former G.J. Gardner Hobart West franchise is very unfortunate for all involved,' GJ Gardner Homes CEO told News.com.au.
'At this time, our primary focus is for the impacted customers and their homes. We have begun working with the appointed liquidator and are speaking with each customer to better assess the situation and their individual circumstances.'
The news comes after two other G.J. Gardner franchises collapsed last year.
A franchisee in Springfield, Queensland, declared itself bankrupt, and a Perth West franchise entered liquidation.
Their demise has been part of a worrying trend in Australia with more than 2,000 construction firms collapsing in the 2022-23 financial year amid labour shortages and the rising costs of building materials, power and fuel.
The third GJ Gardner Homes franchise, operated by LV Built in Tasmania , entered liquidation and closed on April 2
Issues had been piling up long before the Hobart West franchise announced it would go into liquidation.
Building defects, approved plans not being adhered to, almost complete stoppages of work, contractors alleging money was owed and finished houses that still needed months of expensive remediation work.
Customers had been allegedly asking GJ Gardner Australia to do something for over a year but the franchisee was allowed to continue to operate.
Customer Akinola Ekundayo signed a contract in August 2021 with LV Built, but thought it was with GJ Gardner.
Work had begun
