Porter Davis Homes (PDH) Group has officially collapsed, with Grant Thornton Australia appointed liquidators of the company which has now left 1,700 unfinished homes in the lurch across Victoria and Queensland.

A last ditch attempt to stymie the company’s decline, which saw significant discounts offered to homebuyers, has fallen flat. PDH Group companies will not be traded, with all works on current building sites now ceased.

Additionally to the 1,700 unfinished homes, some 779 contracts signed by clientele and company are now null and void.

“The extremely challenging environment for residential home building has directly contributed to the PDH Group’s financial position, with rising input costs, supply chain delays, labour shortages, and a drop in demand for new homes in 2023 impacting the group’s liquidity,“ a Spokesperson from Grant Thornton says.

“Notwithstanding the financial support from shareholders and lenders, the group has exhausted options to secure the further funding required to allow Porter Davis to continue to operate viably, and the directors were left with no option but to place the companies into liquidation.”

Liquidators are currently in negotiations with companies that can potentially take over the active customer contracts. More than 1,500 homes are in progress in Victoria, with 200 based in Queensland.

Annual reports submitted to ASIC and the Queensland Building and Construction Commission indicate the company has completed 126 homes in Queensland worth in excess of $78 million, with 186 worth $94.3 completed the year previous. 

A net loss in 2021 of $692,833 overshadowed a $5.9 million profit the previous financial year. Profits of operating subsidiary Barrett Property Sales & Administration fell from $65 million to $53 million over the same period.

A statement released by PDH’s Board says it is deeply disappointed by the fact a solution could not be reached.

They further acknowledged the Group’s employees for their hard work and commitment to Porter Davis, and were hopeful that a solution could be found to support Porter Davis customers in completing their homes.