Simonds Homes goes belly up in Queensland, but says it is not going into Liquidation

Melbourne home builder has gone to water in Queensland's tough housing market after over three years of failure to get traction in Queensland, but say they will honour all maintenance and warranty claims for hapless Queensland client home buyers who put their faith in them.
Simonds home announced the immediate closure of its Queensland Office and building operation, saying it will keep a skeleton staff on to finish all home contracts they have in hand.
Dozens of contract workers, including estimators, draftsmen and sales staff, were today told to stay at home amid growing speculation the business had "gone under".
Managing director Gary Simonds rejected suggestions of financial trouble and assured existing customers their homes would be built. Others believe that the Simonds Homes Queensland operation never made a profit and was propped up by Simonds Homes Victoria, a financial burden, Simonds Homes could do without in the current market they find themselves in.
Mr Simonds said the shock decision was based solely on dwindling demand for new homes and the forecast for continued economic uncertainty. Others believe that the sales of Simonds Homes was disastrous in Queensland due to many management failures and lack of planning for the Queensland market, including trying to recycle old Golf buddies to run the operation in a tough competitive and to Simonds Homes Management, an unknown market.
Sales of new homes in Queensland dropped by 10.1 per cent in November, despite the $21,000 first-home buyers' grant the Federal Government is offering for new properties until June 30.
But as in every tough market the home builders who know their market and their customer profile do well and come out the stronger when markets improve. This will not be Simonds Homes mantle. Their plans and some would say pricing, was out of kilter with the market, and other mistakes were made and not corrected in other areas.
The rest of Simonds Homes, a Victorian company only now, will continue to operate as normal, Mr Simonds said.
"We have decided not to take anymore orders in Queensland and we are scaling back our business there because of economic times," Mr Simonds said.
A small skeleton staff will complete work on the last of Simonds contracts in the south-east in the next six to nine months.
"We will (also) be there to service the maintenance of the warranties for the periods we are obligated to," he said.
Mr Simonds admitted he had considered withdrawing from Queensland for some time, but defended the short notice given to contract staff. This news to others on the staff, as they tried several management changes, plan changes in its frenzied attempts to turnaround the fortunes of Simonds Homes Queensland.
Simonds Homes appear to have Little regard for their loyal staff, giving it seems little regard for the welfare of sales staff and others who suddenly found themselves unemployed.
Others believe that many of these may not be paid their full entitlements.
Queensland's economic outlook is unlikely to improve in the short term, the ageing Mr Simonds said, and the company may never return.
Housing Minister Robert Schwarten said the Building Services Authority had contacted the company and been assured it was not entering into administration.
"The company directors advised the BSA that they plans to complete all existing building contracts and honour ongoing contractual warranty obligations," Mr Schwarten said.
Simonds Homes told the BSA its product did not suit the Queensland market, he said.