Company credit card misuse allegations at centre of Naracoorte Morris Bakery’s closure, liquidator reveals

Allegations of credit card misuse are central to a police investigation into the sudden closure of an iconic SA country bakery.

Naracoorte's famous Morris and Sons Bakery closed suddenly earlier this month. Picture: Facebook.

The alleged misuse of a company credit card is central to a police investigation into claims of embezzlement that caused the downfall of an iconic country bakery.

Police are investigating allegations a former employee used a company credit card for personal expenses without permission, the liquidator says.

WT Morris & Sons Bakery, better known to Naracoorte locals as Morris Bakery, closed its doors for good on February 5 ago after almost 80 years of operation.

The closure happened without warning for its loyal customers or public announcement.

A liquidator appointed by the Federal Court said was he forced to close it immediately after an urgent investigation.

End of an era: Naracoorte's iconic Morris and Sons Bakery has closed its doors after over eighty years of business in the country town. PICTURE: Jessica Dempster.

Less than a week after the lights were switched off, The Advertiser revealed allegations of embezzlement were behind the bakery’s demise.

Liquidator Tarquin Koch said the director had alleged a former employee had embezzled about $300,000, and SA Police confirmed a report had been made.

On Friday, Mr Koch said other former employees were owed “substantial” entitlements and that police were investigating the alleged misuse of a company credit card, with personal expenses incurred without permission.

He said debts owed were currently about $350,000 – and that the company had failed to secure employee dishonesty insurance.

Naracoorte's famous Morris and Sons Bakery was forced to close after an urgent investigation. Picture: Facebook

“SA Police are continuing their investigations regarding the alleged embezzlement, and the company’s director is assisting SAPOL to quantify the amount claimed,” Mr Koch said.

“A former employee has allegedly misused a company credit card to incur personal expenses without the knowledge or consent of the director.

“Disappointingly, my investigations have confirmed that the company was not insured for employee dishonesty.”

Mr Koch said his investigations are ongoing, but available information suggested non-preferred unsecured creditors are owed more than $350,000.

“Former employees have commenced lodging claims with the government scheme known as Fair Entitlements Guarantee,” Me Koch said.

“At this stage it is too early to quantify the total amount of employee claims, however given the length of time some of the employees have been employed by the company, the outstanding entitlements will be substantial.”

The bakery’s property, lease, plant and all equipment is now for sale by Jason Malseed of Malseeds Real Estate, Mount Gambier, who is assisting Mr Koch in facilitating the sale.

Mr Koch said Mr Malseed has shown numerous interested parties through the company’s former business premises, and a number of these parties were considering submitting offers on the company’s plant and equipment, and the company’s former business premises.

Malseeds Real Estate were contacted for comment.

Mr Koch said anyone interested in acquiring the company’s plant and equipment and/or the company’s former business premises should contact Jason Malseed directly.

The bakery’s closure sparked fears Naracoorte’s main strip of Smith Street was becoming a ghost town with the number of vacant shops roughly equalling trading businesses.