It can be problematic when a company, like Economy Glass, gets taken down due to corporate issues, even more so when that company is responsible for several multimillion-dollar projects for the region, such as what happened with South Australia’s Reliable Glass company.
Reliable Glass, a family-owned Australian glass company based in Royal Park, Adelaide, was established in 1988, and has recently been involved with several of the South Australian state’s major projects, both public and private, which include, but are not limited to the expansion of the Calvary Hospital, and the upgrading of the Adelaide Festival Centre.
That is, until the company informed its employees last November 30, Thursday, of the company’s liquidation, with the appointment of liquidators Heard Phillips on the following day.
According to Anthony Phillips, director of Heard Phillips, 50 of Reliable Glass’s trade creditors were owed a combined total of approximately AU$2M, with one of them even proving that they were owed around AU$700,000. The employees of Reliable Glass, on the other hand, are also owed, with each supposed to received AU$80,000.
As a result of Reliable Glass’s collapse, there have been a lot of losses, with 40 jobs and an additional 13 full-time and rest subcontracting positions being remove. The union in SA fears that this is only the beginning, expecting a notable ‘ripple effect’ in the SA glass manufacturing industry as a result of this collapse.
Construction, Forestry, Mining and Energy Union State Secretary for South Australia, Aaron Cartledge, said that the CFMEU expects the liquidation of Reliable Glassto have a substantial impact in the industry, as the company was more than just another glass company like Economy Glass, it was one of the largest structural glazing companies in the state of SA. With its liquidation, glass manufacturers and suppliers are set to get caught in the aftermath.
He adds that the CFMEU is fully aware of Reliable’s tight funding brought upon by bad debts and delays in builder payments, as well as the fact that Reliable Glass has yet to be paid by other contracting companies on some of its completed projects.
The company was involved in the following projects prior to its liquidation:
- Adelaide Festival Centre upgrade (AU$90M);
- University of South Australia’s Health and Innovation Building (AU$247M);
- Andrews Hospital expansion (AU$45M);
- AIR 7000 Project at Edinburgh (AU$350M);
- Great Hall Expansion on Hindley St. (AU$50M), and;
- Calvary Hospital on Angas Street (AU$300M);