CLOSE to $100,000 of unpaid bills stood on the front doorstep of Coral Coast Homes yesterday in the form of an angry group of unpaid tradies - but the “closed” sign remained.
The tradies say they have been unable to reach director John Biles since he shut his doors on Friday.
Yesterday, it seemed no one could get hold of him - including the Building Services Authority.
Now the watchdog has suspended the company's building licence, telling Coral Coast Homes to pay its debts before it can get it back.
It is arranging for a “turnaround expert” to analyse the business, which has suffered a steep decline in its fortunes.
In 2002/03, it did 32 jobs totalling $6.45 million, but in 2008/09 it did 13, bringing in $1.6 million.
Today, it has 12 contracts.
PLASTERER John Ivich knows that he has seen payment of his bills by Coral Coast Homes take longer and longer periods, and today says he is owed $5500.
But the problem does not stop with him - Mr Ivich has a crew of six dependent on his income.
“I've already paid them and paid for my materials, but he (John Biles) hasn't paid me,” he said.
He is one of almost a dozen tradies who say they are owed money by Coral Coast Homes - collectively around $100,000 in total.
Painter Peter Meiers was blunt yesterday.
“I just want my money,” he said, adding that he alone was owed more than $9000.
Ian Jennings, general manager of the Building Services Authority (BSA) - which is overseen by Minister for Public Works Robert Schwarten - said it had been investigating the company for some months regarding its financial position.
He said Coral Coast's licence had been suspended “to prevent serious financial and other harm to subcontractors, suppliers and consumers”.
The BSA had received information from the company's accountant stating it met the BSA's financial requirement for licensing.
“Despite this assurance from the company's accountant, the BSA continued to receive information that the company was not paying its debts,” he said.
Now the BSA was arranging for a “turnaround expert” to go in analyse the business. The expert would also be able to “assist with any restructure”.
On May 19, the BSA imposed conditions on the company's licence which effectively imposed a watching brief.
When Mr Biles went to ground, however, the authority had to step up its measures.
“BSA had no option other than to suspend the company's licence today due to ongoing complaints of non-payment, the fact that the company had closed its doors, and that the company's director and other representatives could not be contacted by BSA,” he said.
“The BSA will lift this suspension if the company can demonstrate that it can and will pay its debts.”
The authority understood a report had been prepared for the company on its situation, but the BSA had not been provided with a copy.
Mr Biles did not return the NewsMail's phone calls yesterday. "