Tax and advisory firm Grant Thornton has been appointed as the voluntary administrator of cladding supplier Fairview Architectural.
Fairview Architectural specialises in the design, manufacture and supply of cladding and composite panel products to the construction sector. Based in Lithgow, Fairview Architectural employs 52 people in Australia. Fairview Architectural shares a licence agreement with brands in the UK and NZ to supply some products, however all companies are independently owned.
The company has been placed into voluntary administration by its director as the business was unlikely to remain solvent in the future due to a series of company and industry challenges. This includes incurring approximately $1.5 million in costs defending a class action claim brought against it, in relation to a product called Vitrabond, alleged to be a combustible cladding product.
The director has advised that he intends to form a rescue package to preserve jobs and repay creditors whilst at the same time ensuring the business operations of the company can continue. The rescue package involves a potential sale of the company’s business to a related entity.
The administrators are negotiating a licence agreement with the related party to preserve the business and retain staff.
The administrators will also be conducting a comprehensive investigation into the reasons for the company’s failure, which will include an assessment of any potential financial transactions that may have been to the detriment of the company and that may be recoverable by a future liquidator.