GDK Group’s Joinery and Manufacturing Solutions arm avoids liquidation after mass sackings
A group of NSW factory workers were “unceremoniously dumped” weeks before Christmas, but the company has escaped a damning court order.
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A group of NSW factory workers who were “unceremoniously dumped” weeks before Christmas have received their official termination notice but the company has been spared from going into liquidation.
On Friday, all 30 cabinet makers at a joinery and manufacturing site in Wetherill Park in western Sydney were sent their official termination notice, more than a week since they lost their jobs.
The company, Joinery Manufacturing Solutions Pty Ltd, faced court on Tuesday over unpaid debts to the tax office.
But the Federal Court agreed to grant the company an adjournment until January 29 next year.
Earlier this month, news.com.au revealed that 11 companies linked to this Wetherill Park factory are part of the GDK Group and have gone bust, after multiple court actions with debts in excess of $45 million.
Joinery Manufacturing Solutions Pty Ltd is part of this group of companies and although it is not in liquidation, it is non-operational ever since all its employees were let go.
Joinery Manufacturing Solutions’ director and chief financial officer, Nicholas Kalikajaros, called a meeting at the front of the Western Sydney factory in early December and informed everyone that they no longer had jobs.
Emotions ran high, with one worker telling news.com.au at the time “it was very sad to see grown men crying”.
Mr Kalikajaros also appeared in the Federal Court on Tuesday morning and defended his business, asking for more time so he could find legal representation, which was granted.
At its peak, the GDK factory had around 100 staff and 50 contractors but current employees say that number has shrunk to around 30 amid mass resignations.
In the termination letter, signed off by Mr Kalikajaros, staff were informed “your position is no longer needed” and that “regrettably” this meant their employment was over, effective immediately.
Mr Kalikajaros informed staff verbally they would not be receiving their final two weeks of pay but in the termination letter, he wrote that all outstanding payments would be fulfilled.
He also thanked them for their time serving the company.
Do you know more? Get in touch | alex.turner-cohen@news.com.au
In May, Himlad Pty Ltd, linked to the GDK Group of companies, went into voluntary liquidation with debts of $29.8 million, according to a statutory report filed with the corporate regulator.
Since then, the tax office has forcibly wound up multiple other companies in the Federal Court, as recently as this Tuesday. Initial estimates from one liquidator put the new debts at more than $15 million for four of the most recent company collapses.
Staff have been left fuming as they are owed $2.1 million, including $885,000 in superannuation which is not recoverable through government rescue schemes.
In a bizarre twist, several of the companies have been named after obscure references from the iconic book series The Lord of the Rings, such as Himlad, Hithlum, Thargeliou, Belegaer, Ossiriand, Nevrast, Dorlomin and Avernien.
The strange business names left one staff member, who is owed $25,000 from unpaid superannuation, “confused” and unaware of some of the companies.
In May, after Himlad Pty Ltd went into liquidation, workers’ payroll and leave entitlements switched over to Joinery Manufacturing Solutions Pty Ltd.
Then in July, three other companies went into voluntary liquidation – Nevrast Pty Ltd formerly trading as Imprint Furniture, Dorlomin formerly trading as Imprint Systems and Avernien Pty Ltd formerly trading as GDK Ventures. Liquidation reports say these companies were part of the GDK Group.
At the end of November, the Federal Court ordered two more companies to go belly up and Henry McKenna of insolvency firm Vincents was nominated as the liquidator.
Hithlum Pty Ltd formerly known as GDK Group (Global) Pty Ltd was ordered to go into liquidation due to unpaid tax debts of $261,000 while Thargeliou Pty Ltd formerly known as Imprint Street (Australia) Pty Ltd had $90,000 in unpaid taxes.
In early December, Ossiriand Pty Ltd was ordered to go into liquidation. The liquidators Alan Hayes and Wayne Marshall of Hayes Advisory have been contacted for comment.
Another slew of businesses collapsed by court order several days later – GDK Group Pty Ltd, Belegaer Pty Ltd, GDK Projects Pty Ltd and GDK Holdings.
The appointed liquidators, Jonathon Colbran, Tristana Steedman and Richard Stone of RSM, told news.com.au these four firms “have total creditor claims likely to exceed $15 million”. Of that, the ATO is owed at least $500,000.
alex.turner-cohen@news.com.au
Originally published as GDK Group’s Joinery and Manufacturing Solutions arm avoids liquidation after mass sackings
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