David Jones Mandurah store on hold

PIC: Bigstock

The construction company responsible for building our new David Jones store, Cooper & Oxley, has suspended trading for a review of its financial position.

The upmarket department store was meant to be a big anchor for the new Mandurah Forum redevelopment project, but works have been put on hold as Cooper & Oxley construction perform an urgent review of finances.

In a statement the company said it had downed tools at the Mandurah David Jones store in addition to six other projects around the state including work at Perth Airport and Curtin University.

In addition to this the Cooper & Oxley said it had been working with its stakeholders including financiers and key clients, to undertake a restructure and refinance process.

"Unfortunately a suitable agreement has not been reached at this time, and the company has suspended trading while reviewing its options and continuing discussions with stakeholders.”

Cooper & Oxley is one of the ten biggest building companies in Perth.

The Department of Mines, Industry Regulation and Safety was launching an investigation into reports Cooper & Oxley had entered voluntary administration according to WA Building Commissioner Ken Bowron, but no formal notice has been given by Cooper & Oxley. 

He said there was "no previous information" that the company was under financial strain.

Mr Bowron also said builders unable to meet their financial obligations under their registration were required to notify the government.

The Construction, Forestry, Mining and Energy Union in a statement said subcontractors were "devastated" with some reportedly unable to retrieve their tools from the construction sites.

"Workers should not be a bank to underwrite shortfalls, they deserve a fair day's pay for a fair days work," the statement said.

"These cheap tenders are not about negotiating a fair sustainable price; it's all about undercutting decent, well-founded market rates and then cutting corners at the workers' expense.

"All it does is to destabilise the industry and destroys the corporate image of any principal builders by bringing disrepute to the project."

In addition to this the statement also blamed cheaper tender for "undercutting market rates".

No formal statement has been made by David Jones yet. 

In November 2017 the final stages of the $350 million Mandurah Forum redevelopment project started with the construction of the new David Jones store.

The David Jones mall and other outlets were scheduled to open their doors for trade later this year. 

 

 

 

 

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