Big box update
Portland, VIC could get a Bunnings store
A furniture maker in Queensland is in a legal dispute with Bunnings Group Limited after signing a supply contract with the company in 2019
Fri Oct 21 2022
Glenelg Shire Council has received a planning application from Bunnings Group Ltd, for a store on Richardson Street in the regional town of Portland, Victoria.
The store would have a total retail floor of more than 5300sqm, according to The Warrnambool Standard.
Bunnings area manager Patrick Neicho said the application was for a small format store. He told The Standard:
It would represent a significant investment in the Portland community of more than $15 million. The proposed store would be located near the corner of New Street and Henty Highway and would span more than 5000 square metres, with onsite parking for 125 cars.
Should our plans progress, we'll look forward to becoming part of the Portland community and supporting the region's economic growth.
Legal dispute
Birbilis Bros, a manufacturer of kitchens, wardrobes and furniture based in Logan, Queensland has gone into voluntary liquidation. It is understood cash flow difficulties began in 2019 when it signed a supply contract with Bunnings Group Limited, according to a report in the Albert & Logan News.
After signing the supply contract, company director Terry Birbilis invested heavily in extra staff, retooling and other expenses so it could supply kitchens and joinery products to the hardware retailer's trade division.
Mr Birbilis said in court documents that Bunnings agreed to buy a minimum of about $5 million a year in products but bought substantially less, resulting in them taking court action in June 2021.
The court case is still ongoing, with no resolution following mediation. Mr Birbilis declined to comment but he submitted a statement of claim to the Supreme Court.
Bunnings general manager - commercial, Rod Caust said Bunnings was defending the claims. He told the Albert & Logan News:
We have made attempts to resolve the dispute, but unfortunately these have not been successful. As the matter is before the courts, we are unable to provide further comment at this time.
Founded in 1969, Birbilis Bros was based in Springwood before moving to a larger, 10,000sqm factory at Crestmead in 1994. At one stage it was supplying 120 kitchens a week to Kitchen Connections and other retailers.
Nick Kombis from liquidators Vincents said it was unlikely the company would be able to return to its factory but the directors still hoped to regain control of the business. Mr Kombis said:
They have submitted a proposal for a deed of company arrangement. I'm liaising with stakeholders and creditors. The directors are hoping to salvage the company, but at the moment it has ceased trading.
