Brisbane lockdown to push more firms over the edge
The latest Brisbane lockdown could push some firms over the edge as dwindling cashflow exacerbated their already weak financial position. See list of Qld insolvencies in March.
QLD Business
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The latest Brisbane lockdown could push more firms over the edge as dwindling cashflows, particularly in the hospitality sector, exacerbated their already weak financial position.
A total of 44 Queensland firms entered either liquidation or administration in March, a 22 per cent increase on the 36 insolvencies in February, amid the end of JobKeeper subsidies and debt moratoriums.
A total of 40 companies went into liquidation over the past month and administrators were appointed to four companies.
Revive Financial partner Jarvis Archer said the latest lockdown would be difficult for businesses to handle, especially those in the hospitality and events sectors.
“At risk businesses are already running on tight cashflow and a reduced buffer to overcome disruptions,” Mr Archer said. “While these businesses may be able to withstand a short closure, a key concern will be whether the current lockdown period is extended.”
He said there had been a worrying trend of businesses letting their accounts, and also their tax lodgements, fall behind.
“We are seeing unprofitable businesses with no realistic prospect of paying their ATO debts commonly in the range of $150,000 to $300,000,” said Mr Archer. “It seems that rather than the end of JobKeeper forcing business closures, it will be the eventual activity of the ATO, banks and other finance companies recommencing recovery efforts.”
He said despite the challenging environment, there was now a greater willingness to accommodate flexible payment terms in the business community. “It’s often preferable to get paid over time, and keep a customer, than to write-off the relationship,” he said.
Three locally-based building firms went under this month, reflecting continuing tough conditions in the sector.
Brisbane-based GW Civil Contracting collapsed owing creditors $3.1m after COVID-19 delayed projects and it lost its JobKeeper eligibility.
Worrells liquidator Lee Crosthwaite told creditors that mounting losses meant shareholders were not prepared to further fund the company’s operations.
Gold Coast-based Amphibia Engineering, which specialised in constructing tiny homes, went bust leaving a string of angry customers behind and estimated debts of $1m.
The company, which traded under the name Technopods, earlier this year applied for Federal Government temporary debt relief but was unable to keep its doors open.
Amphibia, whose directors are husband and wife team Jason and Kerry Caruana, specialised in custom built “tiny homes for use on land, water and wheels.”
About 20 Technopod clients, who paid between $15,000 and $81,000, complain they either never received their homes or what they were promised.
Newstead-based Arcren Building was last week placed in liquidation with Bill Robson, of Robson Cotter Insolvency Group now in control of the firm.
According to a report to creditors filed with ASIC, Arcren owes contractors including electricians, plumbers, steel and concrete suppliers more than $420,000.
Arcren claims in turn it is owed about $600,000 in relation to what are described as “inflated claims” from a civil works contractor building a warehouse for the firm at Virginia.
CreditorWatch chief executive Patrick Coghlan said accommodation along with food and beverage providers were struggling due to international travel restrictions, while retailers were suffering as more people worked from home.
“The industries most impacted by COVID restrictions last year remain front of mind as those most likely to default on payments,” said Mr Coghlan.
The franchisee operating a popular Shingle Inn cafe in Brisbane’s CBD went bust earlier this month, joining a growing list of retailers in the area falling victim to the COVID-19 downturn.
Worrells Solvency and Forensic Accountants partner Nikhil Khatri was appointed liquidator of Tafani Corporation Australia, trading as Shingle Inn Brisbane Square, on Monday.
Mr Khatri said the company’s debts included $145,000 owed to the Shingle Inn franchisor, which related to outstanding rent for the cafe’s leased premises at Brisbane Square, a retail and commercial office building in Ann St.
QLD LIQUIDATIONS MARCH
Nanport Pty Ltd trading as “Nanport Pty Ltd”
ACN: 010 847 891
Reinhold Investments Pty Ltd
ACN: 606 788 087
333 Broadlea Pty Ltd
ACN: 624 378 623
GW Civil Contracting Pty Ltd
ACN: 082 690 551
ACN 063 228 400
ACN: 063 228 400
EEBP Group Pty Ltd
ACN: 633 629 946
Independent Plastics Group (IPG) Pty Ltd
ACN: 606 964 621
M & T Kelly Investments Pty Ltd
ACN: 137 525 752
Deekay Pty Ltd
ACN: 168 620 559
Prentice Enterprises (QLD) Pty Ltd
ACN: 609 495 776
Dixon Properties Pty Ltd
ACN: 009 917 328
Tepee Manufacturing Co. Pty Ltd.
ACN: 009 668 348
Ascend Media Pty Ltd
ACN: 614 306 688
Kee Development Pty Ltd
ACN: 619 182 811
ACN 080 483 487 Pty Ltd trading as Advanced Fire Protection
ACN: 080 483 487
Triplerj Pty Ltd
ACN: 623 308 949
BOBRAY Pty Ltd
ACN: 009 754 956
A.C.N. 155 018 394 Pty Ltd trading as Formerly Known As Blue Fin Boats Pty Ltd
ACN: 155 018 394
Blue Ribbon Specialised Services Pty Ltd trading as Blue Ribbon Specialised Services
ACN: 092 835 893
Surfside 2021 Pty Ltd, formerly known as Surfside Seven Pty Ltd & Bayside Capital Pty Ltd
ACN: 102 355 420
Wavecrest Pty Ltd
ACN: 010 279 115
Amphibia Engineering Pty Ltd trading as Technopods
ACN: 604 377 451
Memtech Holdings Pty Ltd
ACN: 623 365 168
Carano Pty Ltd
ACN: 098 436 910
Cape Three Points Pty Ltd
ACN: 000 607 527
Asset Solar Tech Pty Ltd
ACN: 630 625 544
Queensland Solar and Storage Pty Ltd
ACN: 625 247 949
A.C.N. 009 671 434 Pty Ltd
ACN: 009 671 434
Darlex Holdings Pty Ltd
ACN: 130 396 815
CND Civil & Demolition Pty Ltd
ACN: 643 150 538
Landmann Australia Pty Ltd
ACN:605 967 468
Tafani Corporation (Australia) Pty Ltd trading as Shingle Inn Brisbane Square
ACN:605 783 220
MFG Buderim Pty Ltd trading as My First Gym Maroochydore
ACN:627 160 598
French-Sinclair Holdings Pty Ltd
ACN:624 003 970
48 Kingscliff Street Pty Ltd
ACN:139 213 700
ACN 612 095 039 Pty Ltd trading as Formerly known as King Marketing Systems Pty Ltd.
ACN:612 095 039
Easier Group Holding Pty Ltd
ACN:642 497 747
J W & D M Courtney Pty Ltd
ACN:002 049 578
ENCIO Pty Ltd
ACN:636 620 785
Beleze International Pty Ltd (In Liquidation) trading as Michelle’s Skin & Body Solutions (Townsville)
ACN:134 235 644
QLD ADMINISTRATIONS MARCH
Bayside Gate Frames Pty Ltd trading as “Bayside Fencing Products”, “Direct Factory Outlet Concrete Sleepers, Landscaping And Building Products” and “Concrete Sleeper Retaining Walls Brisbane”
ACN: 146 901 706
TBC Supplies QLD Pty Ltd
ACN: 604 823 707
ACN 159 582 279 Pty Ltd (Administrators Appointed) - formerly Clarence Professional Offices (Brisbane) Pty Ltd
ACN: 159 582 279
Raging Thunder Retail Pty Ltd
ACN:116 275 006
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