August 28, 2017
Well-known civil construction company Ostwald Bros announced on Monday that it is going into voluntary administration – potentially putting about 470 jobs at risk.
Managing Director Brendan Ostwald said Ostwald Bros Pty Ltd, Ostwald Facilities and Accommodation Pty Ltd, Ostwald Construction Materials, Ostwald Bros Civil Pty Ltd and Ostwald Construction Materials had been put into voluntary administration with PriceWaterhouseCoopers.
A PWC spokesman said employees would be stood down from work for 48 hours while the administrators carried out a review of the business.
Member for Maranoa David Littleproud said he was working with the Federal Government to support those affected by the shock announcement.
“I was saddened to learn Ostwald Bros has gone into voluntary administration and I understand about 470 employees – and their families – could be affected,” Mr Littleproud said.
“I have made contact with my ministerial colleagues including Employment Minister Michaelia Cash and Human Services Minister Alan Tudge to make sure our local Centrelink office is fully equipped to assist those affected.
“This is a local, family-owned and operated company and a major supporter of rural Queensland and I know that I am not alone in my hope that Ostwald Bros can get back on track.”
Mr Ostwald said he was saddened by the decision to put the Dalby-based company into administration.
“Over the past 27 years the family-owned and operated company has been a major employer and contributor to regional Queensland,” he said.
“With the significant downturn in mining and infrastructure, Ostwalds has actively explored ways to keep the company trading including having downsized, sold major assets, reinvested profits in the company and more recently attempted to refinance and sell the business.
“Despite our best efforts, more recently, the company has been effected by commercial issues on two major infrastructure projects which has impacted cashflow and forced this decision today.
“We will continue to actively assist the administrators, PriceWaterhouseCoopers who are now responsible for all Ostwald operations and decisions moving forward.
“Staff and contractors were advised this morning and I would like to take this opportunity to thank our hardworking team for their loyalty and efforts. We would also like to thank our suppliers and customers who have supported Ostwald.
“We are deeply saddened by this decision and are acutely aware the impact it will have on our loyal employees, their families and the local community.”
The two projects that Mr Ostwald referred to in his statement are believed to be contractual disputes with suppliers to the Second Range Crossing at Toowoomba and Pacific Highway upgrades.
A meeting with creditors has been scheduled for September 6.
UPDATE: Jobs in south-east Queensland took two more hits on Monday with the announcements that the Churchill Abattoir near Ipswich will close (500 jobs), as well as the Steggles factory at Wulkuraka (400 jobs).
UPDATE August 30: 260 Ostwald Bros employees were notified on Wednesday they had lost their jobs following PwC’s initial review of the company. About 140 other workers may be able to return to work next week.
