BCR Advisory has been designated as the liquidator following the bankruptcy of Bella Modular, a company that specialized in the production of portable granny flats and office structures.
Numerous customers and contractors have suffered financial losses, with some individuals having invested over $100,000 for homes that were ultimately never delivered.
The liquidator’s role will involve the systematic closure of Bella Modular and the effort to recover funds owed to creditors.
Terri Beard, a 76-year-old woman who had recently fought breast cancer, envisioned living in a modular home on her daughter’s property for familial support. She paid $130,000 to Bella Modular, based in Perth, for a transportable granny flat.
However, just two weeks after making her final payment to commence construction, she learned that the company was unable to fulfill its commitments due to “financial difficulties.”
“I had a meltdown… I felt awful because I was homeless at 76, after years of hard work,” she expressed.
Despite her retirement savings being significantly depleted, Ms. Beard considers herself fortunate as she has managed to secure another modular home from an alternative provider for over $140,000.
Affected clients are now looking to BCR Advisory, which was appointed liquidator yesterday, for any potential recovery of their funds.
BCR Advisory’s responsibilities will include dismantling Bella Modular’s operations, probing the causes of its collapse, and liquidating its assets to facilitate repayment to creditors.
Many customers have made substantial deposits for homes that remain unconstructed, while subcontractors are owed significant amounts of money.
During a visit to the company’s facility in Hopeland, Geoff Davis, a consultant from BCR, found only one incomplete modular home at the deserted location.
“The situation does not appear promising. Our focus is not on selling physical assets but rather on financial recoveries,” Mr. Davis remarked.
With the site appearing unsecured and stripped of valuable items, Mr. Davis indicated that he would also explore other avenues for recovery, such as trademarks or other assets that could be liquidated for cash.
Additionally, he will investigate the possibility of “unreasonable transactions” and whether the company operated while insolvent, which could lead to claims against its directors.
Chloe Pigdon is identified in ASIC records as the sole director of Bella Modular. Her husband, Trent Pigdon, who founded the company, manages its daily operations. Mr. Pigdon declined to comment after multiple requests from ABC.
A Credit Watch report reveals that the company owes the Australian Taxation Office $576,614.68. Mr. Davis is also preparing a confidential report for the Australian Securities and Investments Commission (ASIC).
Steve Walczak reported that 51 individuals, including 41 clients and six contractors, reached out to him after he established a Facebook group for those impacted by Bella Modular’s collapse.
He estimated their cumulative losses to be around $4.7 million, although this figure has not been independently verified.
While he and his wife feel “lucky” that their modular home is almost finished, he described the situation as “heartbreaking” for many others affected.
“Currently, the sentiment among the group is that there is little hope for recovering their funds,” he shared with 102.5 ABC Perth.
Mr. Davis has encouraged all affected clients and contractors to reach out to establish their claims. Since the homes are manufactured off-site and clients independently arrange their transport and placement, the contracts do not fall under building indemnity insurance, which typically protects against losses when a construction company fails.
Commerce Minister Tony Buti stated that the Cook Labor government would consider potential regulatory changes.
“I have directed the Department of Local Government, Industry Regulation and Safety to investigate whether Bella Modular violated Australian Consumer Law prior to its liquidation, with the possibility of prosecution,” Mr. Buti noted.
The WA Consumer Protection Commissioner has also urged clients to file formal complaints to facilitate further investigation.
