04/05/2022 - 14:40

More Coyne businesses go under

04/05/2022 - 14:40

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Two Coyne Group entities have entered liquidation weeks after New Sensation Homes, but it’s understood the business units were not substantial.

More Coyne businesses go under
New Sensations and Coyne Group share an office. Photo: Matt Mckenzie

Two Coyne Group entities have entered liquidation weeks after New Sensation Homes, but it’s understood the business units were not substantial.

New Sensation entered liquidation in April, with 50 home building projects on the company’s books.

It was led by director Danny Coyne.

Coyne Group Holdings and Coyne Property Group entered liquidation on Tuesday, with David Hurt and Jimmy Trpcevski of WA Insolvency Solutions (a division of Jirsch Sutherland) appointed to the businesses.

Mr Coyne owned Coyne Group Holdings and 50 per cent of Coyne Property Group, according to Australian Securities and Investments Commission data from April.

His father John Coyne owned the other 50 per cent of Coyne Property Group at that time.

Business News understands neither entity was building homes or had any clients, and both were vehicles for display homes.

One of those display homes was vandalised prior to the liquidation of New Sensation Homes because it was incorrectly believed to be an asset of that company, Business News understands.

A series of other businesses in the Coyne and New Sensation empire have not had administrators appointed, with confusion about the extent of the liquidation leading to a flow on impact, Business News understands.

A representative for Danny Coyne had not responded to a request for comment on the status of the other businesses in the group at the time of writing.

In April, the representative said supply chain pressures, labour shortages and poorly-timed stimulus had contributed to the liquidation of New Sensation.

"After an exhaustive examination of the company’s affairs and options, Mr Coyne considered it was in the best interests of the employees, clients (a lot of them first home buyers), subcontractors and suppliers, insurance providers and other key stakeholders to appoint liquidators," the statement said.

"He said the headwinds faced by the company in terms of rising costs, skilled labour shortages, supply delays, ill timed govt stimulus packages and the tightening of indemnity insurance policies against fixed price building contracts all created the perfect storm."

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