After battling breast cancer, Terri Beard had planned to live in a modular home on her daughter’s property to get some family support.
The 76-year-old paid $130,000 to Bella Modular, a Perth-based manufacturer of transportable granny flats and home office buildings.
But just two weeks after handing over the final payment to get the build underway, she found out the company would not be able to complete their outstanding projects due to “financial difficulties”.
“I had a meltdown … I felt terrible because I was homeless at 76, and I have worked hard over the years,” she said.
An unfinished modular home pictured at Bella Modular’s premises south of Perth. (ABC News: Keana Naughton)
Ms Beard said her retirement savings had been decimated but she still counts herself as “lucky” because she will have a roof over her head, after shelling out more than $140,000 to secure another modular home from a different company.
Warehouse deserted
Affected customers will now be pinning any hopes of getting their money back on Sydney-based BCR Advisory, which was appointed as the liquidator yesterday.
BCR Advisory has been tasked with winding down Bella Modular, investigating the reason behind its failure, as well as realising its assets to see if creditors can be paid back.
Dozens of customers have paid hefty deposits for homes that have not been built, while subcontractors are owed tens and thousands of dollars.
When BCR’s consultant Geoff Davis today visited the company’s headquarters in Hopeland on Perth’s southern fringe to see what could be salvaged, there was just one unfinished modular home at the deserted site.
Geoff Davis pictured at Bella Modular’s deserted site, which had been stripped bare of valuable assets. (ABC News: Keana Naughton)
“It certainly doesn’t look good. We’re not looking to be able to sell physical assets here, we’re looking at financial recoveries,” Mr Davis told the ABC.
After sitting vacant with no security, Mr Davis said it appeared the site had been stripped of anything valuable, including equipment.
Mr Davis said he would now look at other potential sources of recovery, such as trademarks or other assets that can be converted to cash.
BCR Advisory consultant Geoff Davis has been tasked with winding up the company. (ABC News: Keana Naughton)
He would also investigate whether there had been “unreasonable transactions” and whether the company had been trading while insolvent, which could form the basis of a compensation claim against its directors.
Company refuses to comment
ASIC records show Chloe Pigdon is listed as the sole director of Bella Modular.
Modular builder faces investigation
Her husband Trent Pigdon founded the company and is the day-to-day manager of the business.
Mr Pigdon refused to comment after the ABC made multiple attempts to contact the couple.
A Credit Watch report shows the company has a debt to the Australian Taxation Office of $576,614.68.
Mr Davis would also prepare a confidential report for Australian Securities and Investments Commission (ASIC).
‘Heartbreaking’ losses
Steve Walczak said 51 people, including 41 clients and six contractors, had contacted him after he set up a Facebook page for people who had lost money to Bella Modular.
He claimed their combined losses amounted to $4.7 million, but this figure has not been verified independently.
Bella Modular’s premises in Hopeland, on Perth’s southern fringe, have now been vacated by the company. (ABC News: Kate Leaver)
While he and his wife were “lucky” their modular home was 95 per cent completed, he said it was “heartbreaking” to hear how the ordeal had affected so many lives.
“At the moment, the sentiment from the group is that there’s not a lot of hope that people will get their money back,” he told 102.5 ABC Perth.
Mr Davis urged affected customers and contractors to get in touch so the firm can establish what creditors are owed.
Because the homes are manufactured off-site and clients independently arrange for them to be transported and placed on sites, the contracts are not covered under building indemnity insurance which covers losses when a building company goes out of business.
One of the final buildings completed by Bella Modular on its site in Perth’s south-east. (ABC News: Kate Leaver)
Commerce Minister Tony Buti said the Cook Labor government would “explore possible regulatory reforms”.
“I have instructed the Department of Local Government, Industry Regulation and Safety to investigate to determine if Bella Modular breached Australian Consumer Law before going into liquidation, with a view to prosecute,” Mr Buti said.
The WA Consumer Protection Commissioner has also called on clients to lodge formal complaints, so it could investigate further.