Auckland housebuilder Sika Homes has gone into liquidation.
The company was paid $121,000 through the Government wage subsidy scheme, but was put into liquidation on June 18.
Liquidators Steven Khov and Kieran Jones said they had been advised Sika Homes’ failed because excessive labour costs and other project cost overruns eroded profit and margins resulting in an unsustainable business model.
“We are advised by the director that cost overruns totalling over $400,000 across two specific projects have caused the Companys cashflow to become expended,” they said in their first liquidation report filed with the Companies Office.
Read the full article at: https://www.stuff.co.nz/business/121986119/auckland-housebuilder-sika-homes-goes-bust