Sharpe Services’ David Sharpe sets up new electrical company, denies illegal phoenix activity, as liquidator chases taken assets

The owner of a well-known electrical firm that collapsed under $6m debt has moved equipment and set up a new business – but denies illegal activity.

The owner of failed electrical company Sharpe Services has set up a new electrical business just weeks after his company collapsed with debts of $6m, but denies he’s running an illegal phoenix operation.

National glazing, electrical and plumbing franchise O’Brien announced on its website last week that David Sharpe had established O’Brien Electrical & Energy Solutions Thebarton, which had been “servicing South Australia for over 40 years under their former business name Sharpe Services”.

The announcement and a Facebook post promoting the new business were removed after inquiries put to Mr Sharpe about the new franchise’s links to his failed business.

Sharpe Services liquidator Daniel Lopresti has also revealed that during a visit to the company’s Thebarton premises on the day of his appointment last month, he discovered the majority of the company’s assets – including equipment, motor vehicles and stock – had been removed and relocated to a nearby site controlled by Mr Sharpe’s related company IENERGYHUB Pty Ltd.

David Sharpe

ASIC documents reveal IENERGYHUB operates the O’Brien Electrical & Energy Solutions Thebarton and O’Brien Electrical & Energy Services businesses.

Mr Sharpe’s lawyer Luke Rowley from Charlton Rowley said the assets were moved prior to the company’s liquidation to “enable the landlord to take vacant possession of the property”, and to his knowledge were not being used by the new franchise.

Illegal phoenix activity occurs when a new company continues the business of a company that has been liquidated to avoid paying outstanding debts, and fails to pay true or market value for the liquidated company’s assets.

Mr Lopresti said Mr Sharpe’s new business had made an offer to purchase several Sharpe Services assets, but only after being instructed to stop using them in Mr Lopresti’s attempts to secure the assets for the benefit of dozens of creditors left out of pocket.

“My investigations into the nature and value of the company’s assets are continuing and at this stage I am not in a position to accept IENERGY’s offer for the assets of the company,” Mr Lopresti said.

“My ability to accept any offer made by IENERGY for the company’s assets is dependent upon various factors including achieving a fair value for the assets and obtaining the consent of the company’s secured creditors.

“As liquidator my role is to protect and realise the company’s assets as well as investigate potential recovery actions such as uncommercial transactions, insolvent trading claims and creditor-defeating dispositions, including illegal phoenix activity.”

Mr Sharpe denied any suggestion he was running a phoenix operation, and said the O’Brien franchise would “not be operated in the same way as Sharpe”.

“I was approached by the O’Brien group a couple of months before Sharpe went into liquidation and discussions evolved from that point into the O’Brien group ultimately offering me an opportunity within their franchise network,” he said.

“I’m looking at keeping some of the assets and infrastructure of Sharpe but not everything by any means. I’m working closely with the liquidator to do so. If we can’t reach agreement then I will proceed without the benefit of some or any of these assets.”

Sharpe Services fell into liquidation on July 11 owing employees and creditors more than $6m.

It had been one of the state’s longest-running electrical, solar and battery companies, recently employing close to 60 technicians and other staff, before cutting that figure to 25 prior to the company’s collapse.

The announcement on the O’Brien website said Mr Sharpe had joined the franchise as a way to “capitalise and grow market share nationally through the O’Brien network and drive better awareness around renewable energy solutions”.

“David Sharpe knew the timing was right for him and his business to tap into specialised support and resources through the O’Brien Electrical & Plumbing network,” the announcement said before its removal from the website.

Mr Lopresti said the outcome of his investigations would be reported to creditors within the next two months.