Sunshine Coast marketing business Red Energy Promotions enters liquidation after Covid-19 woes
A Sunshine Coast marketing empire has collapsed owing more than $3.7m to 72 creditors, from staff to several small businesses. Find out how it happened.
Business
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Creditors have emerged after the collapse of a Sunshine Coast marketing empire which left more than $3.7m owing to 72 debtors ranging from staff to local breweries.
Australian Securities and Investments Commission records show members of Red Energy Promotions (Sunshine Coast) Pty Ltd appointed Worrells Solvency and Forensic Accountants’ Paul Nogueira as liquidator on August 24.
The collapse followed recent business busts including a unique homeschooling service and several swimming pool suppliers in Noosa.
The company, trading as Red Energy Promotions (Sunshine Coast) Pty Ltd, was headquartered along Premier Circuit, Warana.
The Red Energy website spruiks the company as a ‘one-stop branding shop’, helping businesses with uniforms, merchandise, and promotional products since 2004.
Company records show the firm was directed by Sunshine Coast residents Adam Weston, 46, and Troy Maxwell, 49, who were appointed in 2017.
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The documents revealed discussions had been held between Mr Weston, Mr Maxwell and Mr Nogueira back in April, 2020, about the “company’s financial situation and insolvency options”, before Worrells was eventually appointed liquidator in August, 2022.
Mr Nogueira said the initial discussions had centred around issues with the company’s finances when the two men first took over, which had been resolved, when asked about the gap between initial communication and liquidators being appointed.
Records showed the company owed 72 creditors about $3.72m including $169,000 to trade creditors, $218,000 in employee entitlements, $369,000 to the Australian Taxation Office, and $1.36m to ANZ.
Mr Nogueira said the bank loan was related to funds the directors used to purchase the business in 2017.
Mr Nogueira said he understood the company was rocked by Covid-19 and while it had started to dust itself off and become profitable, it had already accrued a “fair bit” of tax debt throughout the pandemic.
He said the directors tried to negotiate with the tax office but it “wasn’t playing ball” and forced their hand into liquidation with a penalty notice.
Records show a handful of businesses on the Sunshine Coast were also creditors, with a listing of debts claimed showing $1660 owed to 10 Toes Brewing, $5700 owed to Devcon Building Co, and $3000 owed to Lallemand Brewing while more than $463,000 was claimed to be owed by Elevate Loan.
The records showed one of the company’s employees was also owed $29,000 and the company had collapsed with just more than $8000 cash in the bank.
Mr Weston and Mr Maxwell were also listed as creditors, owed about $569,000 and $118,000, respectively, and the records showed another related party loan of just more than $109,000 to T and L Maxwell.
The company also owed about $198,000 to another one of their companies, Red Energy Promotions (Franchising) Pty Ltd.
The liquidated company held assets of about $1.88m, including a $1.79m loan from Red Energy Promotions (Operations) Pty Ltd, which Mr Weston and Mr Maxwell also directed.
Red Energy Promotions (Operations) Pty Ltd was also placed into liquidation on August 24.
Mr Maxwell declined to comment when approached for the story.
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