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Strategic setback as Viridi’s modular building operations face an unexpected halt.
Viridi Group, a New South Wales-based modular construction company, has gone into voluntary administration due to the suspension of a government contract, casting uncertainty over the future of 115 jobs.
Established in 2020, Viridi Group carved a niche for itself by delivering solutions that encompass the design and manufacturing of timber-based, pre-finished structural modules for use in
residential, domestic, and commercial building sectors. However, their operational momentum has been disrupted by a freeze on a major government-backed project.
Administrative control of the modular construction company has been transferred to Christopher Darin and Joanne Keating from Worrells, who have taken on the role of voluntary administrators.
Following the advice from the company’s director, the move towards administration was made to safeguard the interests of stakeholders affected by the stalled government contract.
In his statement, Mr. Darin relayed the following: “The director appointed voluntary administrators as the only responsible course of action available after urgently exploring financial options and seeking professional advice from several parties. This decision has been an extremely difficult one. The administration process is in its infancy and we’re working hard to immediately establish the company’s financial position and operations of the business, in order to continue to trade the business in a limited capacity during the voluntary administration. We are conscious and understanding of the impact the appointment will have on everyone involved, particularly employees and creditors.”
The financial difficulties for Viridi Group trace back to at least September last year. The CEO, Ben Nurmi, said the company was not prepared for such a suspension.
Nurmi pointed out, “The factory was set up to deliver certain products and we were halfway through that contract when we got advice it will be suspended.” The implication of the administration on staff has been projected as a significant scaling back in the future, according to him.
Previously, the financial strain had led the company to seek refuge under the Safe Harbour provision of the Corporations Act in September 2023, a move aimed at clandestine restructuring to steer the company back towards a solvent status.
The company’s aim, as per the Safe Harbour arrangement, was to formulate and execute a turnaround plan, with a goal to revitalise cash flow and profitability, thereby ensuring the full settlement of creditors within a stipulated period, which was estimated to be around four months from the initial Safe Harbour notice.
According to reports, Nurmi is confident in the company’s ability to resolve its current financial hurdles and continue its operations.
