Queensland company liquidations after JobKeeper ends hits 343 companies

Analysis reveals 343 businesses have plunged into liquidation since JobKeeper ended on March 29, with fears there is no end in sight for the tsunami of company collapses. SEARCH THE INTERACTIVE

Hundreds of Queensland businesses have collapsed since the end of JobKeeper in March, but experts say the predicted “tsunami” of liquidations never arrived.

Analysis by The Courier-Mail reveals 343 businesses were plunged into liquidation since the Federal Government’s JobKeeper payment ended on March 29.

While not all of the liquidations can be traced back to JobKeeper, Revive Financial liquidator Jarvis Archer said some businesses were unable to survive without government life support.

“There have certainly been companies running down their assets and letting unpaid debts accumulate while receiving JobKeeper,” he said.

“Generally these zombie companies that have likely made up a large proportion of recent insolvency appointments were in financial difficulty pre-Covid.

“Many predicted an insolvency tsunami at the end of JobKeeper, however, it hasn’t eventuated.”

Revive Financial Partner Jarvis Archer is a Queensland liquidator.

Mr Archer, whose national firm receives the most inquiries from desperate New South Wales and Victorian business owners, did not expect to see insolvencies increase in the near future.

“However, each new lockdown causes a number of business closures, particularly in the hospitality and events sectors who suffer the most,” he said.

“Recent local closures including Sun and Earth Organics in New Farm, and Suki in Newstead.”

Mr Archer said Queensland business owners who were affected by Covid restrictions had relied on government stimulus and trade returning to sustainable levels.

“Actively engaging with landlords, the tax office and other stakeholders has ensured ongoing support for these businesses, despite the uncertainty,” he said.

On March 2 Deputy Premier Steven Miles tipped the end of JobKeeper would put 50,000 Queenslanders – mainly in the tourism hotspots of Cairns, the Gold and Sunshine Coasts – out of work.

Instead, Queensland’s job growth has surpassed pre-Covid levels with Australian Bureau of Statistics figures revealing the state’s employment rate fell to 5.1 per cent in June.