Palm Beach Jewellers in liquidation after two decades in business, leaving debts, unclaimed jewellery

A neighbourhood jeweller that traded at Palm Beach for more than 20 years has gone into liquidation, leaving behind a pile of debt and unclaimed jewellery.

Palm Beach Jewellers has gone into liquidation after more than 20 years in business. Photo: Supplied

A NEIGHBOURHOOD jeweller that traded at Palm Beach for more than 20 years has gone into liquidation, leaving behind a pile of debt and unclaimed jewellery.

Some customers of Palm Beach Jewellers phoned police looking for their watches and other items after the shop’s shock closure and have been instead been urged to contact the liquidator, who says much of it is not labelled and cannot be traced to its owners.

The family business failed with debts of more than $140,000 — with much of it owed to its owners who continued to loan it money despite years of losses.

A dispute over whether or not the business should continue to operate, as well as inadequate cash flow, has been blamed for its demise.

Palm Beach Jewellers is in liquidation. Picture: Jerad Williams

A report prepared by director Melissa Brotchie, 52, said the company owed superannuation to staff, but did not know how much.

Ms Brotchie, who described herself in the report as “shop assistant”, did not provide details of money owed to creditors, instead handwriting that further details were available from a lawyer and an accounting firm.

Ms Brotchie is a co-director of the company with John Brotchie, 82, and Diana Brotchie, 80.

She wrote that the amount of stock on site and equipment owned by the company was “unknown to me”. Ms Brotchie declined to comment for this article.

Palm Beach Jewellers had operated for 23 years. Photo: Steve Holland

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A report from liquidator Domenic Calabretta, of Mackay Goodwin Sydney, said the company had just $45 in cash, and had total assets worth $25,885.

Financial records submitted to ASIC show the business had accumulated losses of $30,650 in the financial years 2016-18, with its rent and wages making up 70 per cent of its expenses.

The report said a director told liquidators a dispute between the directors and shareholders, all members of the Brotchie family, was to blame for the failure of the company.

The store at 1/1168 Gold Coast Highway, Palm Beach is now up for lease. Picture: Jerad Williams

The liquidator said his preliminary investigations showed the main cause was “high cash use and inadequate income”, the ongoing trading losses and “poor strategic management of the business”.

His report said the company may have been unable to meet its debts since the 2015-16 financial year and there was sufficient evidence to suggest it had been trading while insolvent since November 1, 2018.

In addition to the money owed to shareholders who loaned money to the company, it also has a $30,000 negative balance with NAB, and that the bank was expected to claim for it.

The report said $97,965 was owed to three related party creditors, $43,079 was owed to five trade creditors and $187 was owed to the tax office.

ACCLAIMED RESTAURANTS OWE $770,000 BUT STILL TRADING

Melissa Brotchie. Picture Mike Batterham

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The report to creditors said directors may be held personally liable for any insolvent trading and that the outstanding $43,266 owed to non-related creditors may be recovered from them.

The directors jointly own a modest home in Mudgeeraba, which property records show was purchased by John and Diana Brotchie for $425,000 in 2001 and partially transferred to Melissa Brotchie in 2016.

Some customer goods left Palm Beach Jewellers was “near impossible” to find owners for. Picture: Jerad Williams

Chris Knight of Mackay Goodwin said while some of the store’s new stock was distinguishable by its price tags, many of the repaired pieces were in paper bags, not properly labelled and “near impossible” to determine an owner for.

He urged anyone who had left jewellery with the store to call his office on 3188 5653.

“If they can send an email with a description, or better still a photo, that would be helpful,” he said.

“Then we can make arrangements for them to pick it up.”