Gold Coast business collapse risk jumps after coronavirus, bushfires

The Gold Coast has the highest percentage of businesses in Queensland sitting close to death’s door thanks to bushfires and coronavirus – and it includes a $1 billion company.

THE Gold Coast has the highest percentage of businesses in Queensland sitting close to death’s door – that is the grim news from a new national survey.

One of those businesses turns over more than $1 billion a year, says national accountancy and insolvency group SV Partners.

The Gold Coast has the highest percentage of businesses in Queensland sitting close to death’s door – that is the grim news from a new national survey. Picture: Glenn Hampson

It says that business is among 568 in the city now at a high to severe risk of financial failure partly because of coronavirus restrictions.

That figure, says SV in its March commercial risk report, represents 3.1 per cent of the Gold Coast’s 18,315 businesses and is a jump of 183 businesses on a year earlier.

SV says that in Brisbane and surrounding areas, which have 41,275 businesses, 2.7 per cent of them are in the high-to-severe risk category.

The report says that business is among 568 in the city now at a high to severe risk of financial failure partly because of coronavirus restrictions. Picture: Glenn Hampson

The risk report says 101 of the Gold Coast businesses in the high-to-severe category were in the construction field, heading a list of 19 categories.

The professional, scientific and technical services area came in second with 79 businesses in the category, followed by retail with 57 and then accommodation and food services with 45.

Bottom of the list of the most-at-risk list was public administration and safety – none of its businesses made the list.

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All quiet in the Streets of Surfers Paradise. Picture: Glenn Hampson

The SV report says that Gold Coast bushfires from September to December caused an immediate drop-off in tourists.

“International tourists naturally declined, with assumptions that all of Australia was affected.”

SV says that when the bushfires are combined with early February’s poor weather and the coronavirus outbreak “there is a high chance that many businesses will be unable to endure this period, despite limited Government assistance being provided”.

There was hardly a soul around, even in the heart of Surfers Paradise at the corner of Cavill Ave and Surfers Paradise Boulevard. Picture: Glenn Hampson

“The chances of successfully bringing a businesses out of its distressed position are low, unless there are only one to two specific issues to be addressed and sufficient time frame to execute stabilisation strategies.

“These businesses need a rapid assessment of options and only quick-win strategies are likely to have any effect.”