Prominent businessman and politician Bob Day has just announced he will resign from Federal Parliament following the collapse of his building company, Home Australia Group. Day made his announcement as Home Australia Group was placed in liquidation.
In a statement, Day said he would lose his family home as a result of the liquidation. Home Australia Group includes Homestead Homes (SA), Collier Homes (WA), Newstart Homes (Qld), Ashford Homes (Vic), and Huxley Homes (NSW). The advisory firm McGrathNicol was appointed liquidator.
While four members of the Group posted a profit in 2015-2016, problems and losses associated with Huxley Homes—and the steep price paid for the company in 2003—seriously undermined the Group’s balance sheet and ability to continue trading.
“Having been in business for over 40 years, I am naturally devastated by what has happened and will do whatever I can now to assist those affected by this closure. All homes under construction are covered by Home Owners Warranty Insurance,” said Day. “I am incredibly sorry for the pain, stress and suffering I know this will cause.’’
The former senator’s statement confirmed speculations he’d been experiencing serious problems with Home Australia Group for several months. The Group’s collapse affects the construction of 207 homes across the nation, including 48 in South Australia. More worryingly, families waiting for their homes to be built have been left penniless or deep in debt.
McGrathNicol has urged clients with homes under construction to contact their insurers (if they have insurance) or contact Home Australia if their homes are uninsured. The advisory firm has also confirmed it would work with insurance companies and clients to get replacement builders to complete homes still under construction.
Prior to his resignation, Day was a senator for South Australia and was the federal chairman of the Family First Party.
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