Insolvency firm Jirsch Sutherland expands to Gold Coast as construction, hospitality struggles

Rising company failures in the Gold Coast’s two largest industries have prompted a national insolvency firm to expand into the city. Here’s the key factor driving the change.

Rising company failures in the Gold Coast’s two largest industries have prompted a national insolvency firm to expand into the city.

Jirsch Sutherland’s Brisbane partner Chris Baskerville said liquidations in the construction and hospitality sectors were rising swiftly as the tax office resumed aggressive recovery actions that were paused during the pandemic.

Reporting from credit risk analysis company Alares shows the number of monthly insolvencies for February and March this year had eclipsed those seen before Covid.

The Alares researchers also captured court actions initiated by the ATO in all states, excluding Tasmania, including wind-ups, bankruptcies and money-owing actions.

After acting on fewer than 20 cases a month for more than two years, the ATO has aggressively increased their actions in 2023, with close to 200 matters initiated in March alone.

Graph showing ATO-initiated court actions. Source: Alares

“You can see they have been ramping up their enforcement actions and that triggers directors to call their accountants and lawyers, they then call us,” Mr Baskerville said.

“We, as a profession have noticed that phone calls are coming in, emails.

“We’re meeting with directors again – this was absent for about two and a half years.

“The number one category is construction and at the moment number two is accommodation and food services – so hospitality. Retail is also one of the big ones.”

Hanzel Hizola of Jirsch Sutherland

Jirsch Sutherland has recruited Hanzel Hizola as principal, after he approached the firm with a view to opening a Gold Coast office and expanding its services to northern NSW.

The former professional chef has more recently worked for PKF, PwC, Rodgers Reidy and Worrells.

“Like many of my peers, I fell into insolvency,” he says. “I was working for the ATO at the time and was offered a position with an insolvency firm.”

“I look forward to creating and strengthening relationships with local referrers including accountants and lawyers, in addition to directors of small and medium businesses.”

Originally published as Insolvency firm Jirsch Sutherland expands to Gold Coast as construction, hospitality struggles