Liquidator sacked as creditors call for fair and impartial liquidation

Revive Financial Liquidator Jarvis Archer has been dumped from winding up the insolvent Total Lifestyle Builders Pty ltd after creditors moved to guarantee impartial liquidation.

Mr Archer was appointed to liquidate Total Lifestyle Builders by the company’s director. At least 13 subcontractors and suppliers eventually moved to sack the Noosa Heads liquidator, as they believed the responsibility of ensuring creditors are paid money owed should not always be passed down by directors.

Subbies United head John Goddard, whose subcontractor advocacy group represented 13 creditors involved in Mr Archer’s removal, was left with the impression that the liquidation process would be a “quick wind up”, despite the company’s significant debt to creditors. He felt that Mr Archer gave little reassurance to creditors that a thorough investigation into Total Lifestyle Builders’ insolvency would take place.

“We’d prefer creditors get to decide on every liquidation or administration,” Mr Goddard said.

“Bottom line, creditors should have the say on who investigates the loss of their own money, so they get the investigation they deserve.”

News of Total Lifestyle Builders’ insolvency appeared in June 2020, with revelations that the company would go into liquidation owing more than $1 million.

As a representative of the subcontractors and suppliers, Mr Goddard revealed that some were out of pocket to the tune of up to $50,000, having built and installed boutique kitchens and other products for the company.

Mr Goddard firmly believes that such high amounts owed to those who obviously deserve to be paid for their work require absolute impartiality from liquidators.

However, he also believes that this can be a challenge when a builder goes into liquidation and chooses their own liquidator. He said liquidators should either do their job properly or “get out of the way and let someone who will” take on the appointment.

“In most cases the liquidator is independent and just happens to be appointed by the director, but in other cases we see the directors or advisors having very close relationships with the liquidator – we don’t like that,” Mr Goddard said.

“Creditors don’t want lip service, they want the director prosecuted if there has been misconduct.”

Hall Chadwick Brisbane Partner Ginette Muller was recently appointed as the replacement liquidator. She said that if any creditors knew of or suspected wrongdoing by anyone associated with Total Lifestyle Builders Pty ltd trading as Lifestyle Kit Homes should contact her for a confidential discussion.