High-end blinds manufacturer turning over $4.5 million collapses into administration
Thursday, May 9, 2013/
A Melbourne-based manufacturer of commercial and high-end residential blinds has collapsed just as the property industry has begun to find its feet after years of instability.
While the market has seen a number of property, construction and manufacturing collapses over the last few years, the building industry has been improving lately as interest rate cuts feed into higher construction and fit-out activity.
Lidi Group was placed in administration on Tuesday, with PPB Advisory partner Craig Crosbie appointed.
A spokesperson for PPB told SmartCompany that given the business was only placed in administration on Tuesday, the administrators would provide no comment.
The Lidi Group was also contacted by SmartCompany, but telephone calls were not answered.
The business was founded in 1976 and manufactures blinds for commercial and residential properties. On its website, the company says it creates custom blind products for high-end fit out projects.
The business turns over approximately $4.5 million a year. PPB is now advertising for expressions of interest for the business.
Although PPB did not comment on what specifically caused the collapse, The Lidi Group is exposed to two problematic industries – manufacturing and property development.
There have been a significant number of manufacturing collapses over the past several months. The high Australian dollar is making materials more expensive, with the latest data showing the industry is still continuing to contract.
The business has also been exposed to a stressed property development sector, especially in the company’s home town of Melbourne.
Louis Christopher, the managing director of SQM Research, told SmartCompany while he cannot comment on this company’s specific situation, there has been plenty of pressure on Melbourne developers in residential and commercial construction.
“I wouldn’t imagine there are a lot of good developments going on right now,” he says.
“I note the approvals data has been coming off and there were just so many operators in Melbourne, there was less business coming through. Some of them would have been doing it tough.”
With less construction activity, fewer fit-out suppliers, such as Lidi Group, would have received work.