Give Where You Live hope to buy and run The Paddock at Leopold

Details of a rescue package for The Paddock at Leopold have been released after the site, previously owned by Encompass, was shut this month.

Give Where You Live foundation chief executive Bill Mithen. Photo : Ginger + Mint

Community focused Geelong foundation Give Where You Live wants to buy and run The Paddock at Leopold after it was closed this month.

The Paddock, owned by Encompass Community Services, was caught up in organisation’s collapse and was shut on February 1.

Give Where You Live has offered more than a million dollars to buy The Paddock, a 2.7ha farm where day programs for people with disabilities and other social enterprises were run.

On Friday, Encompass creditors voted to put the organisation into liquidation. That will start a process which aims organisation’s debt including employees entitlements.

Encompass’ debt is more than $4m, about $3m is owed to staff.

Encompass chief executive Elaine Robb has been on a leave since December and has remained away from the organisation as it collapsed in January and February.

Encompass Community Service office at East Geelong. Inset: Encompass chief executive Elaine Robb, top, and board chair Alyson Miller.

Ms Robb, who worked at Encompass for more than 27 years, claims the organisation owes her $185,146, according to a creditors list. She did not return a call on Friday.

Give Where You Live chief executive Bill Mithen said the organisation had made an offer to Encompass’ liquidator Worrells to buy The Paddock.

The off-market sale will have to be assessed by the Federal Court which oversee asset sales as part of a liquidation process.

“Our goal is to open it as soon as possible,” Mr Mithen said.

“We see that our role sometimes in the community is to try and step in and help where we can.

“We think that it is a solid price (offered) which is good for creditors and former staff of Encompass.

“We’re going to have to spend a bit of time over the next few months working out what our business model at The Paddock will be, but we are very keen to continue running it as a social enterprise.

“We want to continue to have access to the community there, particularly people looking for work, people with disability; families who have used The Paddock in recent times, it would be great to have them back there.

“We see opportunity (at The Paddock) for the long-term unemployed, young people who are disengaged from their education and other people.”

Encompass liquidator Nathan Deppeler said: “Whilst court approval is still required in respect of the proposal, we remain confident a favourable outcome will be obtained.”

On Friday Worrells, Encompass’s administrator, now its liquidator, had its $670,000 bill for administration approved after it took over the organisation on January 12.

Worrells has brokered the potential deal to sell The Paddock, and performed in-depth activities including testing the viability of Encompass, transitioning its services and analysing the organisation’s accounts.

Worrells estimate it will seek to be paid at least another $150,000 to liquidate Encompass.

Worrells will seek to have more than $543,000 returned to Encompass because of a debt that may have been paid to the Australia Taxation Office incorrectly.

Mr Deppeler said: “Liquidation also allows us to pursue any transactions for the benefit of creditors and allow further investigations and recovery of assets and other potential claims.”

About 140 of 300 people employed by Encompass are now employed by disability service provider genU.

When Worrells took over Encompass more than $456,000 was owed to staff following a pay audit.

A significant sum, possibly more than $1m, could be owed to Encompass staff employed before 2021.

Originally published as Give Where You Live hope to buy and run The Paddock at Leopold