Trouble-plagued builder Modco Residential has gone into voluntary administration blaming unprecedented industry challenges and intense media scrutiny.
Director Damien Clancy said in a statement released on Monday that it was a moment of “profound sadness” for the fledgling company that was launched to great fanfare less than two years ago.
Cynthia Lu and Yusuf Khan at the launch of Modco Residential.Credit: Facebook
Founded by Perth glamour couple Yusuf Khan and his wife Cynthia Lu in the middle of the global pandemic, a key pillar of the company’s strategy was to guarantee cost-effective home builds within 20 weeks.
But as its customer base rapidly grew, its construction times ballooned, leaving behind a trail of broken promises and dozens of distressed homeowners.
“Despite our efforts to overcome adversities expected in building a growing business, the rapid and unforeseen external challenges ranging from unprecedented industry challenges, perpetuated by a series of controversial articles that created distrust amongst stakeholders became an insurmountable challenge,” said Clancy.
“What initially started as a nationwide industry challenge of increased costs of materials and labour and shortage of skilled trade forcing…