The owner of a now-broke ’boutique’ construction company was flogging her luxury goods online in the months leading up to her business’ collapse.
Cynthia Lu, co-owner of Modco Residential, was trying to sell designer shoes, bar carts, coffee tables and baby bouncers as her Perth-based company entered administration on July 23.
Some of the items, which failed to sell, were discounted by hundreds of dollars by the struggling mogul as she desperately tried to offload them.
Ms Lu and her now-husband Yusuf Khan launched Modco in 2020, promising 20-week timelines for construction projects.
After the builder announced it had ran out of money, tradies claimed they were still owed money and half-finished builds were left across the city as customers grappled with insurance claims.
Cynthia Lu (left) has been trying to sell designer shoes, bar carts, coffee tables and baby bouncers as her construction company, Modco Residential, entered administration on July 23
Ms Lu has also been trying to get rid of an old pair of scuffed-up Valentino high heels since April, which retail at $1,100 but she’s selling for a modest $880
While the couple flaunted their wealth on social media throughout the pandemic, cracks started to appear in the company’s financial fortunes when Ms Lu’s luxury items were spotted on Facebook’s Marketplace.
As of Thursday Ms Lu still had four active listings, each for hundreds of dollars a piece, after already being heavily discounted.
A ‘stunning designer gold frame coffee table’, which was originally listed at $900, can be scooped up today for $685.
Ms Lu has also been trying to get rid of an old pair of scuffed-up Valentino high heels since April, which retail at $1,100 but she’s selling for a modest $880.
‘Worn once, is too small,’ she wrote in the description.
‘Perfect condition, no scuffing with only worn marks at the bottom of the sole as per picture.
‘Comes with everything including box, receipt, extra parts.’
Boujie babies are also in for a treat, with Ms Lu listing a ‘brand new Bjorn Bouncer’ that her ‘daughter (Luna) didn’t like … and was never used’.
The final active listing is a ‘beautiful custom golden pendant’, which has been available for a year at the low cost of $200 for pick-up only.
She did however manage to offload a ‘beautiful decor’ gold brass and mirror finished bar cart which had been weighted.
The cart was sold for over 50 per cent off of its recommended retail price, going for $300 instead of the $630 that she had paid for it.
The founder’s bids for cash come as 29 Modco Residential customers remain stranded in limbo and claim they have been abandoned during the company’s administration process.
A ‘stunning designer gold frame coffee table’, which was originally listed at $900, can be scooped up today for $685
During the height of the couple’s construction career, they’d been raking in reported gross sales of $80million from 84 customers within a year of launching Modco Residential
During the height of the couple’s construction career, they’d raked in reported gross sales of $80million from 84 customers within a year of launching Modco Residential in August 2020.
As many as 50 creditors were left $4million out of pocket, which includes Ms Lu herself who claims that as a primary shareholder she’s been left $2.1million in arears.
The owners had flaunted sports cars and flashy jewellery on their socials prior to the collapse, which included Ms Lu’s five-carat oval engagement ring and wedding band encrusted with half-carat oval stones.
They’d also been spotted with a rose gold Royal Oak Audemars Piguet from Barbagallo Watch, a Bentley Bentayga SUV and a bright red Ferrari 488 GTB.
Meanwhile, Modco’s customers are left grappling with insurance claims to recoup their lost homes.
Some customers who thought they were clients of Modco Residential have also since discovered that their contracts, building permit and home indemnity insurance had been registered with other builders, according to Building and Energy executive director Saj Abdoolakhan.
‘These homeowners should contact the builder named on the building contract to discuss arrangements for the completion of their homes,’ he told the West.
As these revelations were coming to light, the company was evicted from their Osborne Park premises in May after not paying bills.
The strain of the business had become too much, according to a statement released by Modco director Damian Clancy.
‘What initially started as a nationwide industry challenge of increased costs of materials and labour and shortage of skilled trade forcing many builders into administration in the past financial year, was then exacerbated by the intense media scrutiny targeting Modco Residential creating distrust amongst our trades, vendors, staff, shareholders, clients and the industry insurer QBE,’ Mr Clancy’s statement read.
‘This caused significant strain on business operations and made it exceptionally challenging for us to acquire skilled tradespeople, retain staff and continue our operations.’
Since the announcement that Modco was going into administration, several tradie groups have come out of the woodworks to try and scrape up the money that they’re owed.
Torquejobs first launched an action and was paid $28,000.
This was shortly followed by two more, Flexi Commercial Pty Ltd and Drywall WA, with Drywall claiming it was owed $35,000.
Daily Mail Australia has contacted Ms Lu for comment on the marketplace listings.
Since the announcement that Modco was going into administration, several tradie groups have come out of the woodworks to try and scrape up the money that they’re owed