Sparkling White Smile insolvent but founder Alison Egan has bags of style

Eastern suburbs teeth whitening mogul Alison Egan allegedly allowed her company to clock up $1.6m in debts while insolvent — but she’s still been spotted around town flaunting a luxe lifestyle.

Sparkling White Smile founder Alison Egan. Pictures: Julian Andrews

Eastern suburbs teeth whitening mogul Alison Egan allegedly allowed her company to clock up $1.6m in debts while insolvent — but she’s still been spotted around town flaunting some high-end finery.

At the peak of her powers, Ms Egan rubbed shoulders with Sydney royalty like Francesca Packer, who flew the emerging entrepreneur to France to celebrate her 25th birthday.

She was also celebrated as being a socialite with a brilliant business idea that turned her into a multi-millionaire.

But a liquidator’s report examining the wreckage of the 30-year-old’s celebrity-linked operation, Sparkling White Smile (SWS), showed the Double Bay-based business was living on debt and had only $380 in the bank.

SWS owes almost $2.5 million to a long list of creditors, which includes family members, eastern suburbs friends and associates, and the Australian Taxation Office.

Ms Egan holding a Hermes Birkin which costs about $20k. Pictures: Instagram

Ms Egan (right) with an unidentified friend and a Hermes Kelly bag costing $18k.

It has almost $150,000 outstanding on an American Express card, while Ms Egan also loaned herself more than $400,000 from the company, the report said.

Despite the unfolding disaster, Ms Egan was photographed at Merivale hot spot Mimi’s last weekend to celebrate her birthday.

She has also shared photographs on Instagram of herself toting multiple Hermes handbags in recent years, each worth up to $20,000.

And it has infuriated those she owes money to.

“Alison has a reputation for spending beyond her means,” one former friend told The Saturday Telegraph.

“I remember vividly during my time working with her the extravagant designer brands she would be swanning around in, albeit owing money to contractors including me at that time.

Ms Egan holding another Hermes Birkin, this one with a price tag of $22,000. Picture: Instagram

“I was one of the lucky ones who got paid, but that only happened with a lot of pressure.

“Other small businesses weren’t so lucky and didn’t have the means or knowledge on how to practically seek the repayment of debts she owed.

“The sad thing in Australia is, you can go belly up, close your doors, walk away from what you owe, and start again.

“It is like salt to the wound seeing her live the high life and dining at establishments like Mimi’s knowing so many people lost so much because of her.”

The Saturday Telegraph has attempted to contact Ms Egan.

Liquidator Stephen Hathway is now weighing up whether to pursue Ms Egan personally for the debts under laws that ban insolvent businesses racking up more debts.

According to Mr Hathway’s report, the company may have been insolvent from December 2019.

The report also reveals the list of more than 50 creditors. This included more than $621,000 owed to the ATO, $149,000 to Amex, $210,000 to the Commonwealth Bank and more than $300,000 to financing companies.

The report said Ms Egan also owed money to family and friends. She owes more than $559,000 to her mother and several hundred thousand to friends and business associates.

Employees of the company are still owed $104,000 worth of entitlements, the report said.

Businesses, including modelling agencies and financial advisory firms are also owed money.

In the section of his report dealing with whether he expected to be able to pay a “dividend to any class of creditor”, Mr Hathway wrote: “No.”

According to the report, Ms Egan blamed the Covid lockdowns for the failure of the business.

Mr Hathway listed the pandemic among eight reasons for the collapse that also included “poor management of accounts receivable” plus an inability to pay taxes and debts.

The business had occupied a blue ribbon location on Short St, Double Bay.

It vacated the premises in January 2023 for a Riverstone home linked to Ms Egan’s family.

The company was handed over to liquidators on August 14, 2023.

Receivers found the company had $380 in the bank and debts of $2.4 million.

Financial documents revealed the business had loaned Ms Egan $421,288 as at August 14, 2023.

“I have issued demands for the repayment of these loans and am currently waiting for their responses,” Mr Hathway wrote in the report.

Mr Hathway is also looking to sell the company’s “customer list”, which he wrote “may be of interest to some parties”.

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