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Geelong-based modular builder, Cross Laminated Offsite Solutions (CLOS), is set to be liquidated after failing to secure an investor to sustain operations. CLOS, which specialised in mid-rise, single and multi-level modular constructions, was placed into voluntary administration on May 28 in an effort to restructure and stabilise the business while seeking investment for future growth. Rodgers Reidy, a firm specialising in insolvency, restructuring, and forensic accounting, was overseeing the process.
John Fitzgibbon, CEO and Managing Director of CLOS, said: “It’s devastating. We’re just sitting around the table now, talking about it, as I look at the empty factory,” Fitzgibbon said in conversation with Built Offsite‘s publisher, Michael Dolphin. “After a challenging nine-week period under voluntary administration, the company unfortunately could not meet the challenges outlined in the Deed of Company Arrangement. This news is profoundly distressing for everyone involved, particularly for the 10 team members who were informed of this development yesterday.”
Fitzgibbon attributed the failure of CLOS to the capital-intensive nature of the business. “Apart from it being a heavily capital-intensive process, setting up the business and the factory itself requires significant investment,” he said. Despite the market and industry presence, the financial demands proved insurmountable.
Fitzgibbon also mentioned the importance of larger builders in promoting market acceptance of modular construction and modern methods of construction (MMC). “Watching some of the big builders now talking that language, like I used to work for… You need the big players entering the market as larger builders provide confidence, awareness, and acceptance necessary for the industry’s growth.”
“If there’s a silver lining, it’s that we’ve made a positive impact on the growth of modular construction. We’ve educated people along the way, and my team is eager to get back out there and support other businesses. That’s a significant achievement.”
