05/12/2017 - 16:09

JCY goes into liquidation

05/12/2017 - 16:09

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Major Perth architecture practice JCY has been placed into liquidation after being hit by the slowdown in work volumes, pricing pressures and losses on the Perth Children’s Hospital.

JCY goes into liquidation
JCY incurred losses on the Perth Children’s Hospital.

Major Perth architecture practice JCY has been placed into liquidation after being hit by the slowdown in work volumes, pricing pressures and losses on the Perth Children’s Hospital.

JCY had 12 registered architects and 27 staff earlier this year, making it the eighth largest architecture practice in Perth, according to research by Business News for the BNiQ Search Engine.

Four years ago it was much larger - it was ranked as the state's second largest architecture practice in 2013, when it had 20 registered architects and 50 staff.

Director Andrew Rogerson said staff numbers had fallen slightly in recent weeks, while 11 staff have left the business this week.

Mr Rogerson told Business News that JCY had been short-listed for some government contracts but was told last week it was not successful; in addition, other projects had been delayed.

He described the Perth Children's Hospital - which JCY had worked on with two larger practices - as a very difficult project.

"It took a lot of people a lot of time to do," he said.

"Its very difficult to operate in that sort of environment."

The architectural design team for the hospital was a joint venture comprising JCY, Cox Howlett + Bailey Woodland, and Billard Leece Partnership with HKS.

Mr Rogerson said a broader trend was the pressure on pricing, not just for architects but all professional services firms, and the trend for governments to aggregate projects.

"That means smaller firms don't get a look in," he said.

Mr Rogerson and fellow director Ian Hart appointed Melissa Humann and Simon Theobald of PPB Advisory as liquidators yesterday.

The directors posted a statement today saying the practice - which has employed 230 people over 22 years - has created an outstanding body of work, founded on a dynamic culture of research, collaboration, inventiveness and excellence.  

"We pay tribute to founding and past directors and shareholders, and thank them as well as current directors and shareholders for their exceptional leadership and we thank our staff for their dedication to the exceptional projects we have completed over the years.

“Unfortunately, delays to current projects and our inability to secure sufficient work due to the current severely depressed economic climate, JCY has found itself under significant financial pressure in recent months, which has compounded losses made on the Perth Children’s Hospital and despite having a future pipeline of work we are not financially able to continue.

“We will work closely with the liquidators and we will endeavour to work with you, our clients and colleagues, to ensure, as best as we are able, a continuation of our services and the smooth transition of projects through this process.”

 

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