A luxury Melbourne building company has gone into liquidation informing its customers by a letter.

PFK Melbourne has been appointed as the liquidator after Dome Building was unable to negotiate payment terms with a former director and shareholder.

The South Melbourne company had suffered major losses and directors Andrew Crellin and Jeremy Brockman called the situation ‘heartbreaking’, the Herald Sun reported.

‘You may or may not be aware of a situation last year with a former director and shareholder leaving the Dome business,’ the letter said. 

‘As a result, Dome has annual payment obligations to this former director.’

‘Due to the extraordinary financial hardship builders have endured over the last 12 months we have been unable to meet our annual obligation to the former director in full for this year.

‘We have been attempting to negotiate revised payment terms that would still allow full payment to him in a manner that would also allow the Dome business to survive.’

The letter went on to point out negotiations had failed. 

‘Unfortunately the failure of these negotiations has had a detrimental impact on our business,’ it read.

‘Our business has now been forced into liquidation due to our inability to meet our obligations and the refusal to accommodate payment terms the business can manage.’

Dome had recently expanded to working in the ritzy NSW north coast town of Byron Bay, but now all work has stopped.

When starting in NSW, Dome said on social media that it was ‘proud to announce we have gone national’.

‘Our new office in Byron Bay, staffed by a dedicated and experienced team, marks an exciting chapter in our journey. 

‘We look forward to expanding our portfolio of architects, contractors and suppliers.’

Former director and shareholder Scott Wilcox left Dome in August 2022 and set up a luxury building company called W.

The company was supposed to make annual payments to Mr Wilcox. 

Last February, Dome issued around 400,000 company shares at $1 each to Crellin Pty Ltd, which is reportedly linked to a family member of director Andrew Crellin.

Daily Mail Australia has contacted both Mr Crellin and Mr Wilcox for comment.