Mackay Safety Consultants sues SGB Group Investments over Leichhardt Hotel bills

A Mackay small business owner is forking out up to $250 a month in interest ahead of Christmas because a Sydney-based company is allegedly withholding more than $36,000 in payments.

A small business owner is forking out up to $250 a month in interest ahead of Christmas because a company is allegedly withholding more than $36,000 in payments.

Mackay Safety Consultants director Mick Storch has taken Sydney-based SGB Group Investments to court over four unpaid bills connected to demolition works at Rockhampton’s embattled Leichhardt Hotel.

The Statement of Claim filed in Mackay Magistrates Court on October 17 states MSC provided services between May and August 2023 to the value of $74,745, and as of October 17, a sum of $36,575 was outstanding, as well as $2657.45 in interest plus court costs.

Mr Storch said the fight to get what he is owed has been “dramatic” and has created a “massive hole in our bank account”.

“I don’t think they’ve got any intention of paying,” he said.

“The bit that’s really affected me mentally is the lack of communication.”

Mackay Safety Consultants director Mick Storch says the court side of things have been easy compared to the mental struggle of trying to get SGB Group to respond to his many messages. Picture: Heidi Petith

Mr Storch said he had phoned, texted and emailed multiple times with no response, only recently receiving a text from SGB advising him that it was waiting on payment for the Leichhardt works before it could pay its invoices.

“We paid our contractor,” Mr Storch said, adding a message of his own for SGB.

“I’ve waited long enough, I’ve given you a service, I’ve paid all my bills. Now it’s your turn to pay me,” he said.

The demolition work at the Leichhardt Hotel was abandoned in February after a Workplace Health and Safety investigation.

Mr Storch said it was frustrating to see SGB Group continue to operate, including building the Eden Academy childcare in Mackay, while he worked harder to catch up.

He thanked the “wonderful” Mackay businesses that were paying their invoices ahead of time to help cover the gap.

Under court proceeding guidelines, SGB Group Investments was given 30 days to respond to Mr Storch’s claim. No response was submitted.

A SGB spokesperson told this publication it was “currently in dispute with Mackay Safety and has made several attempts to resolve the issue”.

“Unfortunately the parties have not been able to reach an agreement but are more than willing to continue discussions with them should they be open to this,” they stated.

Mr Storch said his business was brought into the Leichhardt demolition fold after a Workplace Health and Safety investigation on February 8 resulted in an order to stop work at the site.

Mackay Safety Consultants was to liaise between SGB Group and WHS to “get a working plan to move forward”.

New contractors took over the demolition a few months later and SGB Group are no longer associated with the job.

The hotel is managed by national hotel chain Australian Venue Co.