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Geelong based modular builder Cross Laminated Offsite Solutions (CLOS) enters voluntary administration to facilitate restructure and recapitalise the business.
CLOS, a modular builder based at the former Ford factory in Geelong, has entered voluntary administration. John Fitzgibbon, a director of CLOS, in conversation with Built Offsite, stated that the decision was made to restructure the business to secure its future.
Fitzgibbon said: “We chose to place CLOS into voluntary administration to restructure and stabilise the business and seek investment for future growth.” Insolvency, restructuring and forensic accounting firm Rodgers Reidy, has been appointed as the administrator, and Fitzgibbon expressed confidence in their ability to manage the process effectively.
The decision to enter voluntary administration was influenced by several factors, including capital expenses and project cost blowouts. Fitzgibbon explained. “The Company is implementing a state-of-the-art building process that will allow significant automation which is almost complete. However, it’s been a capital-intensive process.”
Fitzgibbon remains optimistic about the future of CLOS. “The idea is to help build on what we have and invite interested parties who can help stabilise and grow the existing business and future potential,” he said. “We have a standout modular business with an amazing work culture that provides employment opportunities to two of the most disadvantaged communities in the state.”
Fitzgibbon indicated a pipeline of future work in excess of $12m, and that the business was on the verge of sustained success, should additional capital become available. Additionally, he stated that CLOS was nearing completion for its streamlined modular building processes.
According to Fitzgibbon, the primary objective of the administration process is to find an investor who can provide the necessary capital injection. “It needs someone to help with a cash injection to allow the business to prosper from the foundations and innovative building practices that have been established.”
