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After 44 years in business as a family company that started in Melbourne and grew to prominence interstate developing infrastructure projects for state and local government clients, Lloyd Group is yet another builder that has proven unable to stay afloat amidst the tide of rising construction costs, materials shortages and labour scarcity.
On the same day that liquidators were called in for Porter Davis Homes Group (PDH Group), the directors of design and construction specialist Lloyd Group have appointed Sam Marsden, Sal Algeri, Jason Tracy and Tim Norman of Deloitte Turnaround & Restructuring as voluntary administrators.
Deloitte reports the appointment affects 59 projects under construction including 29 in Victoria and 30 in NSW.
The company has approximately 300 staff across its offices in Melbourne, Sydney, Brisbane and Geelong.
A list published two days ago and compiled by The BCI Construction League for 2022, in conjunction with The Urban Developer, ranked Lloyd Group in 25th place nationwide with an average project value of more than $9 million and a total project value of approximately $332 million.
Lloyd Group's portfolio of completed projects is highly varied, from schools to rowing clubs, churches to childcare centres, retirement villages to performing arts complexes.
To reach the scale that it has, on its website the company attributes its evolution to the hard work, focus and relentless determination of directors Clinton and Dustin Lloyd. The group was founded by Trevor Lloyd as a small family-owned contracting business in the southeastern suburbs of Melbourne.
"Like others in the construction sector, and despite significant effort, Lloyd Group has been unable to overcome increasingly challenging circumstances over recent months that have eroded project margins, culminating in our appointment today," says Sam Marsden.
"We do appreciate that this news will be unsettling and potentially disruptive for employees and project stakeholders, contractors, and suppliers."
He says the Deloitte Turnaround & Restructuring partners will be undertaking an urgent assessment of the business's financial position and project-by-project status, and will immediately commence communication with principals and stakeholders.
"We will also immediately commence an accelerated sale process and hold discussions with parties that might be interested in taking on individual projects."
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