My Life Support Services sold after family feud leads to collapse
A Brisbane-based disability-services provider which collapsed earlier this month has now been hit with bombshell allegations its staff were underpaid.
QLD Business
Don't miss out on the headlines from QLD Business. Followed categories will be added to My News.
A successful Brisbane health-services provider which collapsed earlier this year is being investigated over allegations staff were underpaid.
Manly-based My Life Support Services collapsed on July 21 when Susan Norman successfully applied to the Supreme Court to have the multimillion-dollar company she co-owns with her daughter Allison Dunn tipped into liquidation.
Control of the business was handed to Jirsch Sutherland liquidator Chris Baskerville, who continued to trade the company following the resignation of Ms Dunn as CEO.
Founded in 2007, My Life Support Services offers tailored accommodation and community support to people with an intellectual, physical or psychiatric disability.
A report to creditors on September 14 has revealed allegations of employee underpayment, which Mr Baskerville has engaged lawyers and launched an “extensive investigations into”.
“Prima facie, it has been reported that the company has underpaid its employees,” he wrote.
“I have engaged exert advice from a Human Resources specialist as well as receiving proper legal advice with respect to this matter.”
If staff were underpaid, they could be considered priority creditors in the liquidation.
There are 61 creditors totalling $166,409.
My Life Support Services employed about 75 workers and had 90 clients prior to its collapse in July.
Mrs Norman, 65, has owned half of the business since August 2016 however claimed she had been kept out of the business.
Ms Dunn said she was unaware of the alleged underpayment of staff.
“If it is alleged that they are not compliant that is not something that I am aware of and so cannot make any comment without detail of the alleged underpayment,” she said.
Ms Norman could be reached for comment.
Mr Baskerville previously described the company as profitable and revealed a sale campaign had been “very successful”, with 27 expressions of interest received.
He said the detail of the sale would be revealed in his second report to creditors due on October 21.