Well known Queensland-based engineering and construction company Ostwald Bros has gone into voluntary administration.
The 27-year old family owned business has been a stalwart organization across western and regional Queensland.
The operation which services the mining and agriculture sectors has placed itself into administration with Price Waterhouse Coopers appointed as voluntary administrators of Ostwald Bros Pty Ltd, Ostwald Bros Civil Pty Ltd and Ostwald Bros Construction Materials Pty Ltd and Ostwald Facilities and Accommodation Pty Ltd.
Derrick Vickers and Sam Marsden of PwC will now conduct an urgent review to ascertain whether the companies can continue operations.
At risk are over 470 jobs.
During this period most employees will be stood down for a period of 48 hours.
PwC say they will work with all stakeholders to determine the current position of the company and explore every possibility to restructure it for the future.
Brendan Ostwald, Managing Director, Ostwald Bros says it is with deep regret they have had to make the announcement.
““The company has been effected by commercial issues on two major infrastructure projects which has impacted cash flow and forced this decision today. We are deeply saddened by this decision and are acutely aware the impact it will have on our loyal employees, their families and the local community.”
He says that the company has faced the significant downturn in mining and infrastructure, by actively exploring ways to keep the company trading including having downsized, sold major assets, reinvested profits in the company and more recently attempted to refinance and sell the business.
“We will continue to actively assist the administrators, PriceWaterhouse Coopers who are now responsible for all Ostwald operations and decisions moving forward.”
“Staff and contractors were advised this morning and I would like to take this opportunity to thank our hardworking team for their loyalty and efforts. We would also like to thank our suppliers and customers who have supported Ostwald.”
Following its review PwC will deliver a report to Ostwald Bros’ creditors, with the first meeting of creditors due to take place on Wednesday, September 6, 2017.