Another major construction and fit-outs business has collapsed into administration, the latest victim of an industry which continues to suffer at the hands of subdued activity in both property and retail.
In the past year, several companies related to both construction and fit-out operations have collapsed, including a high-end blinds maker in May.
Brisbane-based MP Constructions was placed in administration on July 15, with Hall Chadwick appointed.
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The company has significant reach in the industry, with $18 million in turnover last financial year and projects including fit-outs for Supre, Telstra stores, Billabong and Lush, along with commercial interior work for KPMG and Marriott.
Administrator Blair Pleash told SmartCompany this morning the company continues to trade. The business has been facing industry pressures, he says, and entered administration due to issues with working capital.
“We’re trading the business with a view to…market the business and components,” he says, although acknowledging the appointment is still at an early stage.
MP Constructions was contacted this morning, but no reply was received prior to publication.
The business was founded by Mark Pidd in 1996, with a focus on retail and hospitality fit-outs. This grew into other areas, such as manufacturing, and over time with more services including hospitality, construction, painting and solid surface fabrications.
The collapse comes as the manufacturing and construction industries are continuing to suffer under a significant amount of pressure.
The latest results from the Australian Industry Group Performance of Construction Index found the industry is improving, reaching 39 points from 35 in June, but the overall result of under 50 points mean the industry is still in contraction.
Many collapses have been connected to the commercial market. Last month, a Sydney-based air conditioning installation and servicing business collapse, following the collapse of Reed Constructions in 2012.