An Australian company that works with the building industry has collapsed owing $10.6million and leaving more than a hundred jobs on the line.
Fire Services Australia (FSA) Group, which offers contracting services to construction projects, entered voluntary administration last Wednesday after operating for 27 years.
There are now 123 workers across the country without jobs, with many staffers in shock over the company’s demise.
Building contractor FSA Services Group has collapsed after operating for 27 years
‘A sad day for all at FSA. Last Wednesday was a day not too many saw coming,’ QLD FSA Services Projects Supervisor Curtis Lindsay wrote online.
‘Of all the companies I have worked for this one really felt like home. From the people on the ground to the office staff, everyone had time for one another.
‘Thanks for the opportunity to work with so many likeminded people.’
Sydney-based firm Taylor’s Insolvency has been appointed as the company’s administrator and is seeking a buyer to take over the group.
Managing Director Josh Taylor said 264 creditors have been identified so far, which include employees, the Australian Taxation Office and other contractors.
He said the company – which owes $10.6million – gained 60 per cent of its revenue from its operations in QLD, which were crippled by the floods in March.
The company supplied a number of services, including electrical needs, mechanical installations and fire protection, to construction projects (stock image)
‘Generally speaking it was Covid and the floods that hit them really hard because they can’t work when its raining and when its flooded,’ he told news.com.au.
Mr Taylor said shareholders examined ways to save costs and injected more cash in a bid to keep the business afloat, but their efforts proved fruitless.
‘The profitless boom is pretty accurate. They were winning a lot of clients but weren’t making a lot of money out of their contracts and costs of deliverables were higher than what was coming in.
‘And we are seeing that throughout a lot of other companies. Insolvency is finally starting to wake up again after having a very sleepy last few years, it started turning about four months ago.’
Devastated staff members have flocked to LinkedIn to share the news and reflect on their time with the company.
A state manager from the NSW office said he had only been in the role for 18 months.
The company provided services such as electrical needs, mechanical installations and fire protection for construction projects
‘Having taken the risk, moved to another state and undertaken the next step in my career, experiencing a lot, learnt plenty, found a great bunch of people to join the team, it has come to a rather abrupt end,’ he wrote.
‘Never in my wildest dreams would I thought I would go through this process, however, what it highlights is what this industry can do for others.
‘The outreaching of many with their thoughts of concerns coupled with how fast offers of employment went out to my technicians … helping relieve many of my concerns.’
An electrician, who worked for the business for 11 months, said it was a ‘sad day’ to see FSA Group ‘closing their doors’.
‘Something I didn’t imagine experiencing in my career is being made redundant,’ he said.
Saddened employees have flocked online to reflect on their time with the company
‘Just want to thank all fellow employees, clients and share holders for such a great experience for myself to work within the company!’
According to the company’s website, the group worked in several major sector’s including health and aged care, education, entertainment, government, defence and justice and financial institutions.
The range of services provided included electrical and fire protection installation and maintenance, heating, ventilation and air-conditioning, and safety audits.
The liquidation comes after a tumultuous year for the construction industry, with a number of high-profile companies collapsing within the past few months.
Construction giant Pro-build went under in March owing more than $14 million to 784 workers, while Gold Coast-based Condev appointed liquidators weeks leaving creditors out of pocket $31million.