Melbourne company Ultimate Kitchens & Bathrooms collapses

An Australian renovation company has collapsed into liquidation leaving customers and tradespeople millions of dollars in the red.

Melbourne-based kitchen and bathroom renovation company, Ultimate Kitchens & Bathrooms was handed over to liquidator Stephen John Michell on October 31.

Consumer Affairs Director Nicole Rich on November 1 issued a warning to consumers after receiving customer complaints of undesirable conduct.

Allegations included customers claiming to have paid for work but jobs not being completed.

The company, owned by Jeffrey Richards, has been accused of “failing to fulfil consumer contracts” and “failing to respond to consumers”.

Ms Rich said given the serious nature of the issues raised”, consumers needed to be cautious in their dealings with the company.

“Consumers are encouraged to contact us if you need any information about or help with Ultimate Kitchens & Bathrooms,” a statement from Consumer Affairs Victoria said.

According to The Herald Sun, the company could have taken up to $2.5 million in deposits from customers for projects that were never completed.

It was also reported that tradespeople and suppliers could be owed about $2 million.

A letter sent to creditors, seen by Herald Sun, revealed 52 projects were under construction while a further 43 households paid for jobs that hadn’t even started.

“The company experienced Covid lockdowns for approximately 18 months, which subsequently led to lost trade suppliers, supply chain issues for materials and price rises for materials and labour,” the letter read, according to the publication.

“According to Mr Richards, the above factors led to a reduction in revenue and sales, however, the company’s costs remained the same, resulting in cash flow issues for the company.”

The letter also said the company’s showroom in Essendon set it back significantly, costing more than $350,000.

Dozens of disappointed customers have shared their frustration in angry reviews posted online, with many complaining their jobs never got completed and they don’t have funds to go elsewhere.

A customer who paid the company $40,000 said it had pushed out the start date of their project, which has since passed with no communication.

“Since then we have not heard from anyone nor can we get in contact with them. Their Essendon showroom is closed, their Facebook and Instagram pages are closed. We have made two instalments totalling over $40k and they don’t have the decency to contact us,” the review read.

Another said they paid $12,500 only for the same thing to happen – works were delayed and now the company has liquidated, they have been left in the lurch.

Others have labelled their experience with the company “ultimate deception” and “ultimate incompetence”.

Someone else who forked out $21,000 for works scheduled to start in March next year revealed their desperate but unsuccessful attempts to get in touch with the company.

“I have received no replies to emails or returned calls for three weeks now (since signing on the line basically). I will be pursuing insurance and legal advice on how to claim some of our prepayment back,” they wrote in a review.

Someone else warned others to “stay away from this company” because of its “fraudulent, insolvent trading”.

The liquidation is being handled by PCI Partners.

brooke.rolfe@news.com.au

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