Sydney housing developer Bathla to stand down 350 staff after failing to raise cash
Administrators running the Sydney home builder have failed to raise enough cash to keep the business going.
One of Sydney’s bigger home builders, Bathla Group, will stand down 350 employees on Monday after failing to raise enough money to continue paying them, a source close to the company said.
Bathla’s administrators plan to issue a statement shortly disclosing the move, which threatens the completion of some 3000 houses and apartments under construction.
The administrators have been trying to raise some $20 million from Bathla’s existing lenders to continue operating in the short term and complete some of the newly finished homes.
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By continuing you agree to our Terms and Privacy Policy.The company, founded by brothers Bhart Bhushan and Rajinder Mohan in 1997, targeted immigrant families mostly settling in Western Sydney.
Unable to pay $3.1 billion in debt, the owners handed responsibility for the company to administrators two weeks ago.
The company said changes to property tax rules in this year’s federal Budget hit prices, damaging its business. Bathla had plans to build about another 14,000 homes.
The staff stand-down was first reported by The Australian.
More to come...
