Da’Burger Brisbane closure leaves staff, suppliers desperate for answers

Former staff and suppliers of a once-popular Brisbane fast food business are demanding answers after being left tens of thousands of dollars out of pocket following its sudden closure, but the company’s owners are seemingly uncontactable.

DA'Burger was one of Brisbane's best-loved homegrown burger outlets.

FORMER staff and suppliers of the once-popular Brisbane fast food business Da’Burger are upset and demanding answers after being left tens of thousands of dollars out-of-pocket, with the company’s owners uncontactable.

The burger bars, with outlets in New Farm, Ascot and West End, suddenly closed on January 21 with no warning to staff, landlords or suppliers.

DA’Burger shuts doors on three Brisbane stores

DA’Burger’s West End store has ‘the lot’

One ex-staffer, who wants to remain anonymous, claimed almost 30 employees were owed $36,000 in unpaid wages and entitlements, while creditors, including suppliers and landlords, were owed $110,000.

The business had also reportedly not paid superannuation to staff for the past two years, owing $120,000.

Despite countless calls to the owners, James D’Ath and wife Wendy Mason, staff and suppliers have been unable to reach the couple, who it’s believed have moved to Melbourne.

The company’s pork supplier Gilly’s Smallgoods is owed about $15,000 in unpaid bills, plus up to $30,000 in pre-ordered stock.

“In my own mind we won’t see a cent,” said Gilly’s director Alastair Stevenson.

“It hurts because we were working on very little margin because we were hoping to get involved with them and watch them grow and be a part of that.”

DA’Burger owner James D’Ath, general manager Matija Stefancic and agent Ben Hackett pictured at the chain’s former West End outlet. Picture: AAP/Megan Slade

Mr Stevenson said the last payment he received from the business was in December, but Da’Burger had been struggling to pay their bills for months leading up to that.

The business had expanded quickly in the past six months and was having cash flow issues, said an employee.

After opening their first store in New Farm in 2015, they then opened a second outlet in Ascot in August last year, and a third in November. There were also immediate plans for two more stores – one in Kangaroo Point and another in Tweed Heads – with future ambitions to open eateries in every capital city across the country.

“The business was tight but, like every business that’s expanding, we needed to consolidate our debt and we were doing that,” said the ex-employee.

An equity firm was due to buy into the business next month, but failing that a bank loan for $500,000 was being secured to cover the company through the expansion.

However, the ex-employee claimed the owners decided to pull the pin on the business, which was turning over almost $2 million annually, after consulting an independent advisor.

“The business was not insolvent,” said the ex-staffer. “We only needed to refinance. It was making an operating profit.”

Before closing on January 21, the couple transferred a refrigerated work ute worth about $45,000 out the business into Mrs Mason’s parents’ names.

The business has not been put into liquidation since closing.

Desperate, upset and angry staff members have put in claims to the Fair Work Ombudsman in the hope of receiving some of their pay, entitlements and superannuation.

Mr D’Ath didn’t return The Courier-Mail’s calls.