Michael Hodgkinson, the co-owner and former director of C&E Structures, has filed for bankruptcy.
As Echonetdaily reported in September, Mr Hodgkinson’s building firm was cut loose from the GJ Gardner national franchise owing more than $500,000 to local tradespeople.
That amount is now estimated to be more than $800,000.
It appears local tradespeople – some of whom are owed tens of thousands of dollars each by the company – have no hope of getting their money back, as under bankruptcy law they must now cease any enforcement action.
Plumber Mick Offley has not seen any of the $20,000 he told Echonetdaily he was owed when the company went into liquidation. Other subcontractors told local media they are owed up to $55,000, with at least one having to lay off staff.
Mr Hodgkinson told Echonetdaily in September that he turned down an offer of $75,000 from Gardners to purchase the ailing franchise, saying it undervalued the business.