Smoooth Juice liquidation blows out to $800k, full creditors list
Equipment caught up in the liquidation of a Central Queensland business destroyed by fire, has been seized from the owner family’s proposed new store, updated reports reveal. FULL CREDITORS LIST.
Rockhampton
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The liquidation of Rockhampton Smoooth Juice cafes has blown out to more than $800,000, new official documents have revealed.
The documents also allege director Sandra Rowcliffe’s son, Brett Paul, took some of the equipment legally belonging to the liquidated company assets to set up a cafe in Gladstone.
The cafes, including the southside and northside stores, went into liquidation on March 29, two weeks after the southside store was gutted by fire on March 12.
The George St store fire remains under investigation by police as arson and is still being treated as suspicious.
There is no suggestion Ms Rowcliffe or Mr Paul had anything to do with the fire.
In the report, Ms Rowcliffe blames trading losses, downturn in the economy and the building fire for the demise of the companies.
Internal profit margins referenced in the report also detail significant revenue had not been received for many months prior to the liquidation.
Michael Beck of Worrells Insolvency and Forensic Accountants CQ was appointed the liquidator and filed a statutory report for the two companies on June 28.
SMOOOTH JUICE NORTHSIDE
The northside store was the first to open of the cafes, and was incorporated in July 2020 and opened in that October.
It was located at the Highway Palms Complex, next to Cold Rock, on Yaamba Rd.
In this company, 28 unsecured creditors are estimated to be owed $214,138 and two secured creditors $303,403, bringing it to a combined total of $517,541.
Flexicommercial are owed a security of $259,846 for plant and equipment and shop fitout at the southside side, and including $70,505 for the Ford Ranger with 5MOOTH registration.
It is noted in the report, Worrells collected the vehicle from Mr Paul’s residence but a search warrant was executed by police shortly after for it as it “formed part of an investigation”.
It is also estimated the vehicle is valued at $32,000, and is owed more than double, meaning there is no equity in the vehicle.
The other secured creditor is Angle Auto Finance for a LDV D90 motor vehicle.
Finance owed is $46,441 while the vehicle is valued at $24,000.
Staff were also employed under this company and $78,571 is owed to more than 20 employees in outstanding superannuation, wages and leave.
According to the report, Ms Rowcliffe states this company “began to experience financial difficulty in or around August 2022”, about two years after it opened.
She further states the insolvency was due to “inadequate working capital, continued trading losses, downturn in industry/economy and excessive of credit”.
The internal profit and loss margins indicate the business had not received “significant revenue” since November 2021, about a year after it opened and six months before the second store was opened.
“It appears that the company had been incurring regular monthly losses for a significant period of time,” Mr Beck’s report states.
It is estimated the company has been insolvent since June 30 2022, if not earlier.
As part of the liquidation process, Worrells staff investigated the location of a plant and equipment owned by the company.
According to Mr Beck’s report, the plant and equipment were found across the north and southside trading premises, a storage shed and the proposed Gladstone store owned by the director’s son, Brett Paul.
The report states on the day of the liquidation, Worrells had the locks changed on the Northside store.
Items from the storage shed were sold at a profit of $1,347.
The plant and equipment at the southside store were under a finance company which has been listed as a creditor.
Mr Beck stated shortly after being appointed, the Worrells office became aware “a number of items of the company’s plant and equipment had been removed and transported to Gladstone by the director’s son (Mr Paul).”
Mr Beck states Mr Paul indicated the only items at the Gladstone premises belonging to the liquidated companies were one deep fryer and kitchen utensils.
According to Mr Beck, Worrells gained access to the Gladstone premises and “it was apparent that more items than previously disclosed by the director’s son had been removed.”.
Mr Beck stated some items had been collected however, Mr Paul “did not allow all items to be collected”.
“We understand that he may dispute ownership of various items at the premises,” the report states.
According to the Worrells investigations, and to date of the report, Mr Paul owes $98,582 in a loan from the company.
A demand for the repayment of the amount has been issued.
It is noted Worrells is unsure where the “amount is accurate or recoverable”.
SMOOOTH JUICE SOUTHSIDE
The southside store opened in July 2022 and prior to the fire on March 12 had been closed for a few weeks for repairs.
The fire caused considerable damage to the store rendering it unable to be reopened.
The site, owned by the Rockhampton Leagues Club, has since been cleared and the building demolished.
Mr Beck’s report states the southside owes $247,260 to 21 unsecured creditors, and two secured creditors, Bishop Outdoor Advertising and Bidfood Australia, are owed a combined $53,962.
It is also noted the director’s son, Mr Paul, owes the company $44,179 and a demand has also been issued for the repayment.
There is a caveat that the amount is not confirmed and it may not be recoverable.
The report states the internal profit and loss margin for the store “steadily reduced from September 2022 to March 2023”.
“Further, it appears that the company had been incurring regular monthly losses for a significant period of time.”
Mr Beck estimates the company has likely been insolvent since July 2022, if not earlier.
The director, Ms Rowcliffe, claims the insolvency was due to “inadequate working capital, continued trading losses, downturn in industry/economy and building fire.”
“The director advised that prior to my appointment the trading premises caught fire and subsequently all of its stock was destroyed,” Mr Beck states.
“We have since attended the premises and confirmed that the plant and equipment located at the premises was not salvageable.”
Prior to the liquidation, the director submitted an insurance claim for the fire, along with a theft claim which had occurred a few weeks prior to the arson.
Worrells have liaised with insurance and police on the matter and the claim was approved.
Police have not taken any action, and there is no suggestion the fire was caused by anyone connected with the business.
To date of the report, the insurer paid $97,376.86, and a further $8,000 to $15,000 is being considered for the arson claim and $16,606 for the theft claim.
SMOOOTH JUICE (FIRST COMPANY/NORTHSIDE): CREDITORS
NV Lawyers: $537.29
Ergon Energy: $3606.31
BizCover Insurance: $2880.85
Smoooth Gladstone & Agnes: $21,112
Bishopp Outdoor Advertising: $7424
BDD Outdoor Advertising: $9713
Origin Energy: $1496.17
ATO: $19,820
PacPlus: $5905.40
Sajani Cups & Cones: $3439
Bidfood Rockhampton: $5372.87
Workcover Queensland: $1324
Australian Epoxy Floors: $2700
Lactalis Australia: $990.85
Rockhampton Wholesale Bakehouse: $2472.25
MW & SA Rowcliffe: $48,047
Morrison CQ Agencies: $554
Absolute Plumbing: $1855
Mandoe Media: $30,888
Rockhampton Leagues Club: $10,000
Southern Cross Austereo: $1870
Coca-Cola Amatil: $3955
Kenealy Superannuation (landlord): $20,413
Adnought Sheet Metal Fabrications: $2696.18
Pitchayakorn Paul: $4000
Suncorp Insurance: $106.52
Telstra: $417.97
SMOOOTH JUICE (SOUTHSIDE): CREDITORS
Bidfood Australia: $12,909
Bishop Outdoor Advertising (billboard sign company): $41,053
Adnought Sheet Metal Fabrications: $7142
Alloway Air - Airconditioning & Refrigeration: $198
ASIC: $487
ATO: $1108
BizCover: $4614
Ergon Energy: $4842
Jaylyn Industries: $1855
JJ’s Waste and Recycling: $487
Knight Frank Rockhampton: $10,327
Mandoe Media: $19,860
Sajani Cups and Cones: $5788
NJR Refrigeration & Air Conditioning: $1332
NV Lawyers: $1000
Onsite Rental Group: $4182
O’Ryan Signs and Designs: $440
Pacplus Wholesale: $7587
Smoooth Juice (in liquidation): $124,128
TOTAL: $247,260
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