South Australian senator Bob Day will resign from parliament after his home building business went into liquidation.
The Family First senator, who has attended just three of 11 sitting days since he was re-elected in July, owns the Home Australia Group, which operates in several states, trading as Huxley Homes in NSW, Ashford Homes in Victoria, Newstart Homes in Queensland, Homestead Homes in South Australia and Collier Homes WA.
McGrathNicol has been appointed liquidator for the group and Day has issued a statement saying he had signed personal guarantees and because the liabilities exceed assets, he will lose the family home.
“Having been in business for over 40 years, I am naturally devastated by what has happened and will do whatever I can now to assist those affected by this closure. All homes under construction are covered by Home Owners Warranty insurance,” Day said.
“As for my role as a Senator, I will of course resign.”
Day first became a senator in 2013, but said he returned to the business last year telling its advisers “to either sell it or take on board an equity partner to recapitalise the company”.
“While four members of the group all posted a profit in 2015/16, problems and losses associated with Huxley Homes (and the high price paid for the company in 2003), has seriously undermined the Group’s balance sheet and ability to continue trading,’’ Senator Day said in a statement.
“I am incredibly sorry for the pain, stress and suffering I know this will cause.”
Fairfax Media reported on the weekend that Day had been trying to save the NSW business amid Fair Trading complaints and reports that building completions were nearly a year behind schedule.
Day was the 12th and last senator elected in South Australia.
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