Family-owned Cubitt’s Granny Flats and Home Extensions has entered voluntary administration, sparking a search for a buyer.
The 30-year-old affordable housing provider in NSW and the ACT shared the news with their long-serving staff, some with more than 25 years at the company.
“It was a very emotional meeting,” Cubitt’s said in a media release. “After 30 years building homes, we never thought we’d find ourselves in a position where we’d be saying goodbye to our staff, our business, and the many steadfast customers and suppliers who have supported us. It has been the toughest of days.”
The company, founded in 1994, has been a fervent advocate for apprenticeships, running a carpentry program that has seen more than 120 carpenters gain their qualifications, including a female carpentry apprenticeship program.
Challenged by bank lending conditions, supply price increases, tax changes, higher insurance costs, COVID recovery, and prolonged weather events, Cubitt’s has faced financial strains beyond its capacity.
In 2021, Cubitt’s chose to honour fixed-price contracts without passing on cost increases to customers. This commitment led to the completion of projects through substantial personal loans from owners Ian Cubitt, Kim Cubitt, and Kate Cubitt, leveraging their personal assets to cover the deficits.
Despite efforts, the directors were unable to fully mitigate the financial gap and have appointed Richard Stone and Brett Lord from RSM Australia Partners as administrators. Their goal is to find a buyer for the business.
The Cubitt family pledged their full cooperation with the administrators to secure the best possible future for the company's employees, customers, suppliers, and creditors.
For any inquiries related to the voluntary administration or the sale of the business, stakeholders are encouraged to contact [email protected].
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