A prominent Western Australian builder has issued an emotional statement as his company enters voluntary administration.
Modco Residential, a construction company founded by glamour couple Cynthia Lu and Yusuf Khan, has appointed perth-based firm GTS Advisory to assist in navigating its unfolding collapse.
Director Damien Clancy apologises that the company, which specialises in steel framed homes, could not meet its commitments, with Monday’s statement blaming industry challenges and bad press for the collapse.
“Despite our efforts to overcome adversities expected in building a growing business, the rapid and unforeseen external challenges ranging from unprecedented industry challenges, perpetuated by a series of controversial articles that created distrust amongst stakeholders became an insurmountable challenge,” Mr Clancy said.
“What initially started as a nationwide industry challenge of increased costs of materials and labour and shortage of skilled trade forcing many builders into administration in the past financial year, was then exacerbated by the intense media scrutiny targeting Modco Residential creating distrust amongst our trades, vendors, staff, shareholders, clients and the industry insurer QBE.
“This…
