National panel repair group Action Smart in liquidation owing $4.7m, small businesses out of pocket

A nationwide panel beating group has crashed, with seven companies in liquidation and debts topping $4.7m, including a hefty tax bill. Small businesses across Australia are owed thousands.

A nationwide panel beating group has crashed, with seven companies in liquidation and debts of at least $4.7m, including a hefty tax bill.

Dozens of small paint and panel businesses across Australia have lost thousands in the liquidations, and are unlikely to be repaid.

But despite the multimillion-dollar debts, the business entities have managed to keep driving with the same director behind the wheel.

A lack of major hailstorms in recent years and the business growing too fast, too soon have been blamed for the failure of seven companies that operated Action Smart Group, with workshops across Queensland, NSW, ACT, Victoria, and South Australia.

Seven companies behind national panel beating company Action Smart Group are in liquidation. Director Adam Blackwell (left).

The companies, all directed by Gold Coast man Adam Blackwell, 51, went into voluntary liquidation on April 2, appointing liquidator Steven Naidenov of Aston Chace.

Documents lodged by Mr Naidenov with corporate regulator ASIC said the companies – which changed their names shortly before their failure – owed at least $4.7m.

The figure is likely to rise as the liquidator’s investigations continue.

Action Smart had authorised repairer deals with insurance companies including NRMA, and referred hail damage work to small contractors across Australia.

Mr Naidenov said his preliminary investigations indicated the group “may have expanded too quick”; had borrowed $2m; and accumulated tax debts of around $4m.

Seven companies behind national panel beating company Action Smart Group are in liquidation. .

Creditors contacted this week were reluctant to speak publicly about the collapse, worried it would reduce the chance of them getting any of their money back.

“As a small business, losing any money is really hard in this day and age,” said one business owner owed five figures.

“It means we’ll have to source income from other areas.”

Despite the collapse of the companies, the Action Smart businesses have kept operating as new entities, after new companies directed by Mr Blackwell bought them a few months before the liquidations.

ASIC records show the new company ASG Hail, directed by Mr Blackwell and created in January this year, is operating out of Yatala on the northern Gold Coast under the business name Caravan Fix.

A statement from Mr Blackwell said the decision to liquidate was made “to ensure that all legal and ethical obligations to employees are met, and to ensure the best outcome for creditors, customers, and suppliers”.

“This outcome also reflects the highly seasonal nature of the hail repair industry, with reduced storm activity over the past three years placing sustained pressure on the business and contributing to this difficult decision,” he said.

“All employee entitlements, including wages and superannuation, have been prioritised, and creditors have been engaged through the formal liquidation process.”

Director Adam Blackwell.

Mr Naidenov said three of the collapsed companies sold their businesses to new companies directed by Mr Blackwell for a total of $6.78m in September last year.

“My investigations into the commerciality of the above sales and other aspects of the liquidations such as other voidable transactions are ongoing,” he said.

“In the event that the sales are uncommercial or undervalue then action will be commenced against the purchasing entities and the parties associated with the sale to remedy such claim.

“I have yet to form a view regarding the appropriateness of the pre-appointment business sales.”

A statement from NRMA parent company IAG said it had “robust due diligence and risk management processes in place for its suppliers”.

“As part of our proactive monitoring of ASG’s restructure and any potential impacts on our arrangements with ASG Hail and Caravan Fix Australia, we have sought further information including assurances around the payments due to their suppliers,” the statement said.

“We’ll continue to monitor this process.”

Originally published as National panel repair group Action Smart in liquidation owing $4.7m, small businesses out of pocket