Issue Date:  -  Wednesday, 20 October 2004

Doors close on major supplier

Working Metals Pty Ltd trading as Modular Metals in Administration.

Staff arriving for work on Monday at Modular Metals on Vinnicombe Drive in Canning Vale were greeted by locked doors and the advice to go home, following the trader going into surprise Administration.

Administrator Gavin Dawson of KordaMentha has advised that he is in the process of writing to creditors, suppliers and customers with outstanding contracts and any enquiries in the meantime should be directed to:

Gavin Dawson or Louis Nilant

KordaMentha
Level 11/37 St Georges Terrace
Perth  WA  6000
Ph: 92216999   Fax: 92216977
Email: gdawson@kordamentha.com

“Whilst we expect the majority of enquiries to be from traders and handled by the Administrator, Consumers can also contact us for advice”, Consumer Protection Commissioner Patrick Walker said.

“I am advised by the Administrator that his initial investigation has revealed that the company is holding approximately $30,000 worth of deposits in relation to consumer contracts. 

“These deposits taken by this company seem to be associated with about 50 contracts that remain outstanding to supply garage doors, sheds or patios. 

“The Administrator has also advised that their investigations into this company have only just commenced so it is premature to discuss any adverse impact there may be on consumers.

“The first meeting of creditors is to be held at the offices of KordaMentha on Friday 22 October, 2004 at 10am.  I would encourage any consumer who may have contracts outstanding to attend this meeting and voice any concerns”, the Commissioner said.

The Home Building Contracts Act applies to contracts for home building and associated work valued between $6,000 and $200,000. It is illegal for a deposit greater than 6.5% to be taken by a builder.

This is a timely reminder to consumers and industry alike, to make sure that only minimal deposits are paid up front, and progress payments are made for materials after their delivery or for work after its completion.

Consumers with any concerns regarding Modular Metals after contacting the Administrator should call Consumer Protection on 1300 30 40 54 or email consumer@docep.wa.gov.au.