Update @3.00pm: The three Ruby Collection towers due to be built in Surfers Paradise have now been put on hold, after the developer went into voluntary administration.
It’s been confirmed that Said Jahani, Phil Campbell-Wilson and Graham Killer from Grant Thornton have been appointed Voluntary Administrators to the Ralan Group on 30 July 2019.
In a statement from Grant Thornton, they’ve said they’re undertaking an ‘urgent financial assessment’ and will be holding a first meeting of creditors shortly.
ARTICLE CONTINUES AFTER THIS ADVERTISEMENT
“While we are still conducting our initial investigation, there are a range of small to large creditors. The total value of creditors is still to be confirmed but initial indications are around $500m owed across the group,” a spokesperson told myGC.
Staff at the Ruby Collection tower one and the Paradise Resort (owned by the Ralan Group), were notified by email overnight.
They’ve been assured that day-to-day operations will continue ‘business as usual’.
However, the future of the next towers remains in doubt, with the projects being put on hold.
“The additional towers are not yet in construction phase and as such there are no contractors or trades engaged in building works on these towers. We are working with key stakeholders regarding the next steps in relation to the towers still in planning,” a spokesperson told myGC.
It’s understood that a number of people who have put down deposits for future projects are also being contacted.
Earlier @2.00pm: The company responsible for developing the Ruby Collection hotel on the Gold Coast has gone into Voluntary Administration.
Ralan Group, who also own the Paradise Resort in Surfers Paradise, went into administration on Tuesday.
Hotel staff were informed of the developments in an email overnight.
“On behalf of the Company, I wish to inform you as on Tuesday 30th July 2019, the Ralan Group have entered into voluntary administration,” the email says.
“Grant Thornton has been assigned as the Administrators for the time being.”
In the email, staff were assured that it will be “business as usual” and that “we will continue to operate as we did today.”
“You will all continue to have jobs”, the email continues.
It is understood staff were instructed against speaking to the media.
myGC has contacted Administrators Grant Thornton for comment.