Major creditors in $890k Black Sand Windows collapse revealed

A Torquay construction company has collapsed leaving ex-employees and creditors more than $890,000 out of pocket, a liquidator’s report has alleged. SEE THE FULL LIST.

Clark McGrath

A Torquay construction company has collapsed leaving ex-employees and creditors more than $890,000 out of pocket, a liquidator’s report has alleged.

Black Sand Windows Pty Ltd specialised in the fitting and manufacturing of aluminium window and doors before it shut up shop earlier this year.

A report from liquidator Brent Leigh Morgan has revealed the company owed ex-employees thousands in outstanding wages, superannuation and other entitlements.

According to the report, more than $890,000 was owed to more than 50 creditors when the business collapsed.

It’s claimed employees were owed $15,000 in unpaid wages, $19,000 in annual leave and more than $50,000 in unpaid superannuation.

“To date no advances have yet been made to employees,” Mr Morgan wrote.

The business was run by director Clark McGrath as a sole trader until being rolled into a company in September 2021, moving into a site at Beacon Blvd in Torquay two months later.

“The director alleges that at this time, the company purchased part of the existing business from the former tenant by taking on various employees, stock for work in progress and plant and equipment, some of which were subject to finance,” the report read.

“It is noted that the former tenant has denied this and stated that there was only a sale of assets.”

Mr McGrath allegedly told liquidators the company ran into trouble because some of the materials were not “fit for purpose” and that he’d taken on staff from the former tenant who did not remain with the company.

“Again, it is noted that the former tenant disputes this and I am yet to confirm whether it is correct,” Mr Morgan wrote.

Supply issues, issues with the collection of debts and increased labour and material costs allegedly also contributed to the company’s failure.

“Company’s cashflow issues resulted in there being insufficient working capital with which to

continue trading,” the report read.

“The director made the decision to stand down the employees (given that the company could not pay their wages) while an assessment of the company’s options was made.”

Mr McGrath declined to comment.

Originally published as Major creditors in $890k Black Sand Windows collapse revealed