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The Commonwealth Bank has wound up a brokerage that had 80 staff at its peak but never recovered from the GFC.
Brisbane firm Powerhouse Finance Group collapsed last month, with BDO appointed liquidator. BDO had not replied to The Adviser’s request for comment by press deadline.
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Powerhouse, which offered mortgage broking and investment services, was liquidated with debts of at least $900,000, according to a report lodged with ASIC.
Brisbane developer Impact Homes is the largest creditor, with partly secured debts of $535,000. The Australian Taxation Office is also owed $160,000.
The Commonwealth Bank is owed $86,000, while Bank of Queensland is owed $11,000. Both debts are unsecured.
Powerhouse was founded in 2001. Director Gary Culverhouse told The Adviser the firm had been “flying” before the GFC.
“We had 80-odd staff, turnover was nice and strong and the company was in a very strong position,” he said.
Mr Culverhouse said Powerhouse was hit hard by the GFC - because banks became less willing to lend money, it became harder to get mortgage insurance and property values were reduced.
He said the business had continued to feel the effects of the financial crisis until its collapse.
With the benefit of hindsight, he should have closed the company in 2009 while it was still in a sound position and lived off the trail, he added.
Mr Culverhouse said Powerhouse also suffered a big blow when flooding hit the Bowen Basin in 2010/2011 because much of its business came from the coal-producing region.
