Potential insolvent trading probe after modular builder’s closure
- Perth-based manufacturer Bella Modular has abruptly ceased operations, informing customers that it cannot complete outstanding transportable home projects due to significant financial difficulties.
- The WA Consumer Protection Commissioner is urging affected clients to lodge formal complaints to assist in an investigation into potential insolvent trading and other regulatory breaches.
- Many customers have paid substantial deposits exceeding $100,000 for modular buildings that remain undelivered and are, in some cases, years behind schedule.
Western Australia’s Consumer Protection Commissioner is urging clients of Bella Modular to lodge formal complaints following the company’s abrupt closure last week. The Perth-based manufacturer, which specialized in transportable granny flats and home offices, blindsided its customers on August 19 by announcing it could no longer fulfill its outstanding contracts due to “unforeseen and significant financial difficulties.”
In a correspondence sent to homeowners, Bella Modular claimed that an unnamed third-party manufacturer had agreed to take over existing projects. However, the company failed to provide any specific details about this new firm, leaving many clients in a state of uncertainty. The company has already shuttered its primary premises in Hopeland, located on Perth’s southern fringe.
Commissioner Trish Blake told 102.5 ABC Perth that a formal investigation is now underway. She expressed serious concerns regarding the company’s conduct leading up to the shutdown, noting that she intends to coordinate with the Australian Securities and Investments Commission (ASIC) to determine if the business continued to operate and accept payments while insolvent.
The human and financial toll is significant, with dozens of customers reporting they are still waiting for buildings that are months—or in some cases, years—overdue. Some clients have paid deposits exceeding $100,000 only to be left with unfinished projects and empty promises. Ms. Blake emphasized that the wording of the company’s closure notice suggests deep-rooted financial instability that requires a thorough regulatory audit.
Because these modular homes are manufactured off-site rather than through traditional on-site construction methods, the legal protections available to consumers can differ. The Commissioner is calling on anyone affected by the closure to contact the department immediately to help build a comprehensive case for further action.
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Original article and photo by "ABC News"
