Moreton Bay family boating business sinks under $2.5m debt

A Covid mini boom has turned into a bust for a South East Queensland family-owned boat building business which has collapsed, owing a combined $2.5 million to employees, suppliers, its landlord and the tax office.

A Covid mini boom has turned into a bust for a Moreton family-owned boat building business which has collapsed owing 21 staff more than $260,000 and smaller creditors including suppliers another $1.5 million.

The Narangba company, which specialised in tinnies and other small aluminium boats, ramped up production during the pandemic as bored boaties made plans to get back on the water once lockdown ended.

But a combination of rising interest rates and incorrect costings of some boat and trailer packages combined to sink the business only a few years after its peak, when it employed 35 workers, liquidators said.

Merlin Marine & Leisure Pty Ltd ATF Weeks Family Trust, trading as Stessco Aluminium Boats and Anglapro, recently entered into voluntary liquidation owing a combined $2.5 million to employees, suppliers, its landlord and the tax office.

The business, which opened in Narangba in 2014, ceased trading on February 7.

The appointed liquidator, Ian Currie from BRI Ferrier, said creditors included financiers, parts suppliers, aluminium suppliers, trailer suppliers and motor suppliers.

Stessco recently entered into voluntary liquidation. Picture: File

Mr Currie said $770,854 was owed to secured creditors and The Personal Property Securities Register, with $1,487,994 owed to unsecured creditors.

Employee creditors were owed $258,238, excluding redundancy and pay in lieu of notice.

He said a rapid decline in discretionary spending after a similarly rapid increase during Covid-19, contributed to the business’ liquidation.

“The business increased its production capacity and staffing levels only to see sales volume fall as interest rates increased,” Mr Currie said.

“Incorrect costings of certain boat and trailer packages reduced profit margins.”

The business had 21 employees when it closed but 35 staff at its peak.

According to the Stessco website the family-based business had more than 25 years’ experience in providing premium quality aluminium boats at an affordable price.

The company could not be reached for comment.