Major school supplier collapses owing $5 million

An Aussie company relied on by thousands of parents has collapsed, leaving a trail of unfulfilled orders in its wake and some parents out of pocket.

An Aussie company relied on by thousands of parents to deliver school books and stationery packs has collapsed, leaving a trail of unfulfilled orders in its wake and parents out of pocket.

Brisbane stationery supplier Sequel Books and Stationery entered voluntary liquidation on Monday.

Its website shows it was the textbook and stationery supplier for students at 54 Queensland schools, including the prestigious Brisbane Grammar School.

Customers had previously complained that it had been struggling to deliver orders since the start of this year, with the company receiving 1700 emails asking why orders had not arrived before the start of term one.

Exclusive Brisbane Grammar School is one of the schools Sequel supplied.

On January 5, the company sent an email to customers explaining that workforce issues were behind the delays, according to The Courier-Mail.

“We have encountered challenges this season, including the departure of our warehouse manager at the beginning, and issues sourcing a reliable casual workforce that have significantly impacted our usual efficiency,” the company’s director Anna Henderson wrote.

The delays led many customers to cancel their orders, with some not yet receiving a refund.

“I’m still waiting for them to reply to my 5 emails about a refund on an order that arrived in week 4. I’m assuming I won’t hear back or see that money again,” one customer wrote on Facebook.

“We have a yr11 student studying an International Baccalaureate diploma. The text book saga has become a nightmare,” another angry parent posted.

“Thankfully we cancelled what was left of our order recently and were refunded the difference.”

Liquidator Chris Baskerville from Jirsch Sutherland said the company owes creditors $5 million, including $2.3 million to suppliers.

He told news.com.au that among the suppliers are stationary companies as well as publishing houses, while it was also likely the Australian Taxation Office was owed money, along with some parents.

He said that he had been told the company did “everything possible” to either fulfil student orders or provide a refund prior to its collapse, but it was possible some parents had “fallen through the cracks”.

Sequel Books and Stationery director Anna Henderson broke the news to customers on the company website.

Workforce issues at the company created chaos, leaving kids without school books for the start of term 1.

In a statement, Mr Baskerville said he was undertaking an extensive investigation into the financial affairs of the company and to determine the circumstances behind the failure of the business.

“We understand this is a difficult time for the directors, customers, and suppliers, and are now working closely with the directors of the business to achieve the best return for creditors,” he added.

Ms Henderson published a statement on the company’s website, informing customers of the liquidation.

She blamed economic conditions for the company’s downfall and said that the decision to close the company was made after “careful consideration and with profound regret”.

“The economic challenges proved insurmountable for our business, leading to the difficult conclusion of nearly three decades of operation,” she said.

The company updated customers via a statement on its website.

Ms Henderson thanked the schools, customers and suppliers who had supported the business, and also thanked the company’s staff, which numbered around 50 during peak periods, for the way they had ensured the “huge” challenges in recent months.

Mr Baskerville confirmed all employee entitlements had been paid in full.

“My heartfelt appreciation also goes to our dedicated team, whose unwavering commitment has been instrumental to our journey,” she said.

“The challenges you have endured over the past few months have been huge and you have all faced them with such grace, I am in awe of you.”

The company had been in business for more than 30 years, with Ms Henderson adding that the family’s involvement in the book industry could be traced back to 1902.

“From Barkers Bookstore, to BCF (Barker, Conlan & Ferrett), and now Sequel Books & Stationery, it has been the honour of our family to serve Queenslands education community.”