All staff sacked in monster $23m company collapse

The debts of a collapsed group of businesses have blown out to almost $23 million, while other subsidiaries have quietly gone under in recent weeks.

The debts of a collapsed group of NSW businesses have blown out to almost $23 million, while other subsidiaries have quietly gone under in recent weeks.

News.com.au reported in April that a western Sydney factory had closed down and all workers had been terminated on the spot.

It comes after two companies linked to the Sydney-based Apollo group, which manufactures kitchen and bathroom joinery, have entered liquidation after 56 years in business.

When Apollo Kitchens (NSW) Pty Ltd went into liquidation, all its 65 workers were called to the front of the factory and learned they were jobless.

Apollo Kitchens owes $11.2 million to creditors, including staff, according to its liquidators.

Another business, called Brownlen Pty Ltd, which operated as the head office of the Apollo group, also went bust at the same.

Brownlen’s liquidators recently revealed to news.com.au they had received claims from creditors that amounted to $11.5 million.

That brings the total amount owed across both businesses to nearly $23 million.

It comes as a worker, Ron*, previously told news.com.au: “All staff are absolutely disgusted.”

Apollo Kitchens went into liquidation earlier this year, and now other sister companies have followed suit.

One of the Apollo factories.

Since news.com.au originally broke the story that two Apollo businesses had liquidated, more have succumbed to a similar fate.

Apollo had showrooms in Sydney and the Central Coast where customers could order cabinets or bench tops for their homes directly.

And last month, Apollo Joinery Showrooms Pty Ltd also went into liquidation, appointing Edwin Nawayan and Grahame Ward of insolvency firm Mackay Goodwin.

On the same day, another business in the Apollo group also went into liquidation – Apollo Stairs.

In an initial report to creditors, the appointed liquidators – once again from Mackay Goodwin – estimated that the business only owed $24,000 to two creditors.

A report filed to CreditorWatch in January this year showed that at the time, the business had a $740,000 tax debt hanging over its head.

A Mackay Goodwin spokesperson said it was too early to disclose how much the companies owe as investigations are ongoing.

Do you know more or have a similar story? Get in touch | [e-mail]

The Apollo Group which manufactured kitchen and bathroom cabinets, kitchen bench tops, and stairs.

Mackay Goodwin is also overseeing the liquidation of Brownlen Pty Ltd, the employing arm of Apollo’s head office staff. Its collapse resulted in a further 29 job losses as well as $11.5 million of debt owed to creditors.

The Australian Tax Office is the largest creditor, they said, with a $10 million claim.

Staff have also missed out as they are owed about $1 million.

“Our team is conducting investigations to identify any recoverable assets or claims. While these investigations are ongoing, we are unable to comment further,” Mackay Goodwin added.

Apollo Joinery is one of the major joinery manufacturers in NSW.

Meanwhile, the liquidators of Apollo Kitchens (NSW) Pty Ltd previously said the business owed $11.2 million.

Kathy Sozou of insolvency firm McGrath Nicol was appointed liquidator of the company after the Federal Court ordered the company be wound up over an unpaid $7.8 million tax debt.

Aside from the tax it owes, most of Apollo Kitchen’s debt is to a few big suppliers as well as about 50 smaller businesses.

The company owes a further $3.5 – $4 million to other unsecured creditors.

Apollo’s director Peter Bader and the liquidators called a meeting at the Western Sydney site after the court order for the business to shut down earlier this year.

Factory worker James* had already suspected something was deeply wrong, as his pay was a day late.

James and a number of other workers refused to work until their wages were paid.

“The factory opens at 6am,” he told news.com.au. “It would have been 10.30am, maybe 11 until they came down (and explained what was happening).”

James, who has worked at the company for 14 months, thinks he is owed around $15,000 from unpaid wages and unpaid super.

He said he had not received any superannuation for the entire time he worked at Apollo Kitchens.

“I’ve got a mortgage, I’ve got a family, I’ve got a little bit of savings, I’ve applied for some jobs, it has taken a long toll,” he said.

It comes as another group of manufacturing companies went bust at the end of last year owing nearly $80 million.

News.com.au reported that 11 companies linked to GDK Group went into liquidation.

Many staff had no idea of the extent of the different arms of the business.

[e-mail]