A family-owned business specialising in manufacturing kitchen fit-outs has collapsed into voluntary administration.
Niaz Kitchens was founded by Henry Niaz in 1986, starting out in a small part of a relative’s factory in the west of Sydney.
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The company specialises in high-end kitchens and joinery in apartment and hotel complexes and counts Harry Triguboff’s Meriton Apartments among its key clients.
The company has completed more than 1000 individual projects and installed more then 30,000 kitchens.
Niaz Kitchens was placed in voluntary administration on July 2, with Ozem Kassem and Jason Tang of Cor Cordis appointed to manage the administration.
The first meeting of creditors is scheduled to be held in Sydney on July 14.
Colin Porter, founder and managing director of credit reporting bureau CreditorWatch told SmartCompany this morning it is “business as usual” in the Australian manufacturing and building and construction industries and he wouldn’t expect to see major difficulties in both the residential and commercial building markets.
However, Porter says for manufacturers, it is still “as tough as it always has been”.
Speaking more generally, Porter says small and medium size businesses can run into cash flow problems if their business is reliant on just a handful of clients, even if they are large customers.
“If you have a problem with one client, it can start to impact your business,” Porter says, adding that it only takes one client starting to pay invoices slowing for cash flow problems to present themselves.
“From a business advice perspective, it is essential to have a positive project plan for the future,” Porter says.
SmartCompany contacted Cor Cordis but did not receive a response prior to publication.