A popular family-run building business servicing NSW and the ACT has collapsed after 30 years in operation.

The decision to liquidate Cubitt’s Granny Flats and Home Extensions was made on June 14 by 30 of the 373 creditors owed a total of $6.8 million.

There were still more than 100 customer contracts for projects both underway and yet to be started when the business first entered voluntary administration in February.

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Those contracts were offered to the 40 interested buyers as part of the sale during extensive efforts to salvage the company.

Various assets were sold to Acrow Homes on June 11, including business names, intellectual property, project records, and a customer list.

Acrow has reached out to the 130 customers with projects on hold, letting them know it would “restart, reinvigorate and complete” their projects.

RSM Australia Partners administrators Richard Stone and Brett Lord said: “The failure of one business has a domino effect on so many people, from staff, to clients, suppliers and other stakeholders.”

“Today, these impacts are being compounded by a fragile economy and businesses and households who are doing it tough.”

Hundreds of customers, suppliers and other individuals and businesses believe they are owed money.

But Stone said: “The return to creditors was uncertain at this stage and would be subject to future recoveries.”

The administrators had raised $400,000 between the first and last creditors meetings through the sale of Cubbit’s equipment, motor vehicles, and display homes at Wollongong and Newcastle.

But despite these efforts, Stone and Lord foreshadowed that “it is uncertain whether there will be sufficient funds available to make a distribution to any class of creditors”.

‘Devastating’ end for company and contracts

Cubitt’s called the collapse “devastating” earlier this year, when they informed their “loyal and hard-working staff” — some of which had been with the company for 25 years — that they would be out of a job.

The owners, Ian Cubitt, Kim Cubitt and Kate Cubitt, had dipped into their personal assets to complete projects and honour contracts for several years before cutting their losses.

They blamed bank lending conditions, supply prices, tax changes, insurance prices, COVID recovery and lengthy weather events for the losses they were unable to recover from.

For customers who paid a deposit but have not had works started, RSM confirmed that individual refunds are not available.

“Unfortunately, in accordance with the Corporations Act 2001, all funds in the Company’s bank account are made available for creditors as a whole and the Administrators are unable to provide refunds to individual clients,” it said.

One Mittagong man previously told 7NEWS. com.au the collapse had thrown his retirement plans into disarray.

“We were just about to build our retirement home on our son’s property in Mittagong. It has taken a year and several costs to get planning permission, and now we have just heard our builder, who was just about to start, has gone into administration,” he said.

“I was hoping to retire soon, but clearly not yet.”

For customers who would like to access the keys to their unfinished granny flats, as well as copies of plans and council approval, to complete their projects, RSM advised they contact Acrow Homes.

Customers who believe they are creditors are urged by the administrators to email a completed Proof of Debt (POD) form and supporting documents including invoices, contracts, correspondence, and statement of account to cubitt@rsm.com.au.