Mount Pleasant Red Rooster owner Christine Allen leaves employees without wages, super

A family business running two Red Roosters went belly up, owing hundreds of thousands in wages and super to their employees — but questions remain about a missing Audi and a $700k loan.

A family company running two Red Rooster franchises went bust with employees owed more than $600,000, complicating the relationship with a mother and her son who was left stung for a $700,000 loan.

Mackay resident Christine Allen created Dinsley in 2013, acquiring the Mount Pleasant food court Red Rooster franchise in 2014, and the Grandview Dr franchise in 2018 and claims she’s out of pocket $441,000 after the collapse.

Adon Dinsmore, Christine’s son, was director of the company from 2016 to 2022 and sole shareholder, which he says was at his mum’s request.

“I never actually had an active involvement in the business,” Mr Dinsmore claimed.

“I was employed full time and that took up all my time.”

Christine acquired the Mount Pleasant food court franchise in 2014 and then added the Grandview Dr store in 2018.

Mr Dinsmore said he became a director to help his mum buy the Grandview Dr restaurant, and guaranteed a loan of $700,000 from Westpac.

He said he took on the responsibility “to ultimately fund her retirement”.

When he found out the business was in financial trouble in 2023 he injected his life savings into it to keep Dinsley afloat, which he called a “futile exercise” .

Mr Dinsmore’s sister, Justine, was also director of Dinsley for a short period, but Mr Dinsmore said she had “very little to do with the business”. Picture: CoreLogic

Mr Dinsmore said his mum didn’t give him access t0 the business’ financial documents — a claim later mirrored by the liquidator — and alleged Ms Allen refused to take any action to prevent the business from failing.

It all ended in tears when Mr Dinsmore placed the business into liquidation in April 2024, and GT Advisory & Consulting was appointed.

Liquidator Glenn Thomas O’Kearney, the principal liquidator handling Dinsley wrote in a report the company’s failure may be the result of poor financial control.

He said his initial view was the company became insolvent from around June 2020 and his preliminary investigations revealed the business had suffered consecutive trading losses from “at least 30 June 2018”.

Mr O’Kearney identified a number of debts owed to employees, suppliers and Westpac.

Investigations by Mr O’Kearney found employees of Dinsley are owed more than $470,000 in wages and superannuation, $44,525 in leave of absence and $97,235 in retrenchment, for a total of $619,366.

Furthermore, $472,427 remains unpaid from the loan by Westpac and chicken supplier Baiada Poultry advised Mr O’Kearney of an outstanding debt of $11,421.

Baida Poultry’s debt has been paid following the sale of Dinsley equipment.

One company asset Mr O’Kearney has been unable to locate is an Audi 2018 Q2, but according to Mr O’Kearney, Ms Allen said the car is not a company asset.

“She has to date failed to provide any details requested or evidence to support her claim,” he wrote.

Ms Allen said the vehicle was registered in the company name, but also said the company did not pay for it.

Adon Dinsmore took on the role of the director of Dinsley while he was working full time and living in the Brisbane/Gold Coast area.

Mr Dinsmore said Ms Allen refused to provide proof of ownership of the car to liquidators.

The car’s location is currently unknown to the liquidator.

Ms Allen said the business’ failure was her sole responsibility.

“I am devastated with what has happened, not only to my son, but also the staff,” Ms Allen said.

According to a Red Rooster spokesperson all staff members from the Dinsley franchises were retained or offered new roles. Picture: Contributed

Ms Allen added she believed there were incorrect figures in the liquidators report and said she was not the only Red Rooster franchisee to have her franchise revoked by Red Rooster owner Craveable Brands.

“There have been approximately 50 franchisees that have had their franchises taken off them by the franchisor in recent years,” Ms Allen said.

“These franchisees have lost everything as myself and we have all worked long hours over the past years, but to no avail.”

A Red Rooster spokesperson said one franchise agreement with Dinsley was terminated by mutual agreement with the other agreement expiring.

“All staff members were either retained or offered new roles under a different franchisee,” they said.

“We are pleased that under new ownership, our Red Rooster drive thru on Grandview Drive is going from strength to strength.”

Mr Dinsmore said he no longer has a relationship with his mother.

“I have nothing to say to my mother but I feel for the other creditors,” Mr Dinsmore said.

“For anybody considering going into business with family make sure you inform yourself fully and protect yourself in the event that it goes bad.

“Regardless of who it is.”