Rockhampton liquidations: JM Kelly, JBCC, Busby Contracting, Taurus Accounting, CQ Leagues Club, Pierce Engineering, Bullzye
Central Queensland’s lucrative business closures have ripped millions of dollars out of the local economy, leaving creditors debts of up to $4.7 million. Now some of the area’s major bust ups can be revealed. SEE THE FULL LIST.
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JM Kelly has been the biggest liquidation to shake the Central Queensland region in the past five years but there have been many others along the way, leaving creditors thousands of dollars out of pocket and employees without jobs.
We took a look at the liquidations we have reported on over the past few years and what stage they are up to now.
LIQUIDATIONS FILED IN 2021
Company: Jett Building and Construction
Liquidation date: 27/11/21
Liquidator: Worrells Solvency and Forensic Accountants, Michael Beck and Morgan Lane
Last document filed with ASIC: 1/11/21 – outcome of proposal to creditors
An initial creditors list stated the company owed 90 businesses and companies a total of $3,081,948.73.
The company employed 15 permanent staff and 14 casuals at the time of the liquidations.
The company director and liquidator claimed the company was owed $2.5 million by Downer FKG for works carried out for the Shoalwater Bay Training Area remediation project.
Downer FKG denied these claims and stated the company’s contract was terminated and it was paid in full for all the work it had completed, which was again refuted by the director and liquidator.
ONGOING LIQUIDATIONS
Company: TAG CQ Pty Ltd, trading as Taurus Accounting
Liquidation date: 21/12/2020
Liquidator: Pilot Partners, Nigel Markey
Last document filed with ASIC: 20/4/21 – Copy of minutes from meeting
Creditors to the company were owed $264,108 including $65,000 of leave and wages to five employees.
In March, ASIC filed a document stating the company may have been operating while insolvent and the shadow director, Kevin Harker, was being investigated for an alleged breach.
Mr Harker was sentenced to two years jail in February for fraudulently claiming more than $50,000 in fake GST refunds.
He was ordered to serve two months jail and was incarcerated at Woodford Correctional Centre. He has now been released.
Company: Bullzye
Liquidation date: 11/3/2020
Liquidator: Grant Thornton Australia, Cameron Crichton and Graham Killer
Last document filed with ASIC: 21/7/21 – Copy of minutes from meeting
Country clothing company Bullzye filed for liquidation in 2020, closing five physical Queensland stores including Rockhampton, Townsville, Toowoomba, Bundaberg and Mackay and the warehouse for online orders at Murarrie.
The company was still feeling the effects of the drought and bushfires when its supplier in China informed it of a complete shutdown in February due to COVID-19, meaning its expected winter stock would be delayed by at least three months.
The company owed unsecured creditors an amount of $1,544,041.34.
This included general creditors for $743,833.01, the Australian Taxation Office – business activity statements for $272, 328 and integrated client account worth $55, 235.52, combined management wages and superannuation worth $124,452.32 and loans of $348,192.49.
The main creditors were ANZ bank, Toyota Finance, Westpac and Commonwealth Bank and other unsecured creditors include security companies, Australia Post, Telstra, Ergon, JJ Richards, cleaning fees and trust companies, presumably for rent for the physical stores.
It was announced in July 2020, Thomas Cook Boot and Clothing Co bought the company for an undisclosed price.
The company had plans to sell the Bullzye products through its wholesalers and resellers.
Company: Pierce Engineering (voluntary administration)
Liquidation date: 27/2/20
Liquidator: Worrells Solvency and Forensic Accountants, Michael Beck and Morgan Lane
Last document filed with ASIC: 26/07/21 – Outcome of proposal to creditors
A letter of demand from the JM Kelly liquidators for $430,000 forced the 52-year-old Rockhampton company to go into voluntary liquidation.
It was initially reported the company owed $2.475m to creditors, including the ATO and banks.
No money was owed to the about 40 staff and they continued to be paid throughout the liquidation process.
There was also $1.118m owed to the company.
In April 2020, an agreement was reached between the liquidators and creditors that the company could trade on.
LIQUIDATIONS FINALISED IN 2021
Company: CQ Leagues Club Limited
Liquidation date: 15/2/17
Liquidator: Worrells Solvency and Forensic Accountants, Michael Beck and Morgan Lane
Finalised date: 9/3/21
The annual report filed in April 2020 stated the company owed $2,585,150.34 to creditors and $495,694.23 had been paid since the liquidation date.
At the time of the club’s closure, 25 staff were employed and were owed money in wages, leave and redundancy payments but were paid out under the Federal Government’s fair entitlement guarantee scheme.
The club was registered in 1974 and was formerly known as Brothers Leagues Club.
The CQ NRL Bid Team acquired the club in 2009 and changed the name to CQ Leagues Club to support a bid for a National Rugby League team in the region.
The Rockhampton Seniors Brothers Rugby Club was not involved with the liquidation.
Rockhampton businessman Gavin Shuker purchased the property for $341,000 in September 2017 and opened the Rocky Sports Club.
Company: Busby Contracting
Liquidation date: 5/2/18
Liquidator: FTI Consulting, Joanna Dunn and John Park
Finalised date: 20/01/21
The company filed for voluntary liquidation in 2018 as a result of “underquoting liquidation of associated major debtors and flooding of their project sites”.
The liquidators stated the company could have been insolvent from as early as mid-2016.
Reports submitted to ASIC stated the debt was estimated to be $4,775,388.78.
Some money had been paid back to the tax office, employees for superannuation and leave and Woollam Constructions.
Company: JM Kelly Management / JM Kelly Builders
Liquidation date: 17/10/18
Liquidator: PricewaterhouseCoopers
Last document filed with ASIC: 13/1/21 – Annual report / 2/12/21 – Copy of minutes of meeting
Tradies walked off site at the construction of the Aldi on Gladstone Road as word spread the massive Rockhampton-based firm had gone bust.
Contractors ripped up concrete, pipes and drains in an attempt to hastily get any supplies and money back they could.
Construction for the supermarket had begun seven months earlier, in March.
By 11am, the site was almost a ghost town with only a handful of people left.
More than 230 people lost jobs directly and the liquidation had a flow-on effect to many other subcontractors and businesses.
A report from February 2021 stated the company owed more than 400 creditors about $20 million.
The Australian Government, through the Fair Entitlements Guarantee, paid $1.892 million to employees who had unpaid wages, leave and redundancy pay.
The Richardson Road warehouse unsuccessfully went to auction in April.
Pickles held an auction in January 2019 for the company’s other goods, including office equipment, trucks, tools, machinery and a Cessna plane.
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