The Wideform Group of Companies has been placed in voluntary administration.Administrators from BRI Ferrier took charge of the Wollongong-based construction firm, set up by one-time Illawarra businessman of the year Fred Ferreira in 1974, on Monday night.The company has more than 700 employees, including up to 200 in the Illawarra.
Business as usual, says Wideform Cashflow crisis puts hundreds of jobs at risk Wideform's rise as major industry forceThe administrators said they would "be working closely with Wideform's financier, clients, builders and the CFMEU to preserve as many jobs as possible and to ensure the interests of all stakeholders are protected".But Construction, Forestry, Mining and Energy Union NSW secretary Andrew Ferguson, who has met the administrators, fears the company could go into liquidation.He said Wideform owed millions to the Australian Taxation Office, ANZ Bank and other creditors. This included employee entitlements like annual leave. Neither Mr Ferreira nor Wideform's media spokesman could be reached for comment.The Illawarra Mercury reported last month Wideform was approached by creditor ANZ Bank earlier this year suggesting directors place the company in voluntary administration and a new buyer be sought, due to a cashflow crisis. Wideform directors declined to do so and the bank decided not to provide further financial support.The Wideform Group of Companies' problems were compounded last month when project management and construction firm Bovis Lend Lease cancelled a Wideform formwork contract for four projects in Sydney and Newcastle.The CFMEU had since negotiated for the 170 Wideform workers on those sites to transfer to other contracting companies until the jobs were complete and organised for unpaid entitlements to be picked up by Bovis and others, Mr Ferguson said.Last Friday, Bovis paid $500,000 and four builders $250,000 in superannuation and redundancy trust money, he said.Mr Ferguson said there were concerns about the immediate futures of a further 200 Wideform workers in NSW linked to other projects.Those projects include the $62 million SMART Infrastructure Facility at the University of Wollongong, Westfield Pitt St, Royal North Shore Hospital and other sites at Macquarie Park and St Leonards."It's a financial mess. The Bovis Lend Lease situation hasn't been helpful but ... the problems have deep roots and have been going on for a long period of time," Mr Ferguson said.The union's Illawarra-based organiser, Mick Lane, said he had been in daily contact with Wideform employees."We are hopeful the administrators will get stuck in and see there might be a way to trade out of it," he said. "But (the employees) are angry and worried".Illawarra Business Chamber president Les Dion said construction companies which finished projects amid the financial crisis, such as Wideform's Links Seaside retirement village, faced tough circumstances."Wideform have been a good corporate citizen ... and we hope they can get things back up and move onto bigger and better things," Mr Dion said.University of Wollongong's Vice-Principal (Administration) Chris Grange said Wideform was one of a number of subcontractors being used by Hooker Cockram in building the SMART Infrastructure Facility."The university has discussed Wideform's current difficulties with Hooker Cockram and Hooker Cockram and the university remain confident that the building work will proceed on program," he said.
