28/06/2019 - 14:41

Administrations down despite builder, bar pressure

28/06/2019 - 14:41

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Administrations in Western Australia hit their lowest level in five years in the March quarter, but pressure continues for construction and hospitality.

Administrations were down 32.4 per cent on the March quarter of 2018. Photo: Gabriel Oliveira

Administrations in Western Australia hit their lowest level in five years in the March quarter, but pressure continues for construction and hospitality.

In the three months to March, 160 WA businesses headed into external administration, according to the latest data from the Australian Securities and Investments Commission.

That was down 32.4 per cent on the March quarter of 2018.

It was the lowest number of administrations for WA since the March quarter of 2014, when it also hit 160.

Nationally, there were 1,817 administrations in the March 2019 quarter.

In WA, construction was among the industries hit hardest, with 33 administrations.

More than 180 building businesses hit the wall during the 12 months to March, including Northlink contractor Omega Construction.

Accommodation and food was the other industry under particular pressure.

In the three months to March, 20 businesses in this industry went into administration, taking the 12-month total to 95.

There has been a string of hospitality businesses succumbing to pressure in recent months, including cheese brand Blue Cow, which entered administration this week.

Mexican-themed Big El’s X The Wknd at Yagan Square entered liquidation in May.

But the most significant administration was property fund Sterling First, first revealed in Business News in May.

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