JR Precision Tiling: East Maitland director John Riddock files for liquidation
Employees of a tiling company have been left out on pocket after the director filed for liquidation. The company is also facing a hefty tax bill with cash also owed to suppliers.
Newcastle
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An East Maitland tiler has gone into voluntary liquidation as the business is unable to foot a hefty tax bill.
JR Precision Tiling owes two employees a total of $6000 in superannuation and a further $76,000 to unsecured creditors including the Australian Taxation Office and suppliers.
Company director John Riddock voluntarily contacted insolvency firm Revive Financial in February and partner Jarvis Archer was appointed as liquidator on May 4.
“In terms of unsecured creditors, the Australian Taxation Office is the major unsecured creditor with the balance owed to trade creditors.
“Outstanding superannuation … has been disclosed which receives priority under the Corporations Act.
“At this stage, I believe a dividend to any class of creditor is unlikely, however, my investigations are not complete.”
The only asset disclosed by the company, which was registered in February 2018, is a leased vehicle.
It is not believed any customers have been left out of pocket for incomplete or partially completed jobs.
Mr Archer said he was yet to commence investigations into whether the business had traded while insolvent.
He said the insolvency was an unfortunate result of the business simply not making enough money to pay its bills.
“The Director has advised that trading results were insufficient to meet ongoing debt commitments.”
Mr Riddock did not immediately return a request by the Newcastle News for comment.