GDK Group collapses into liquidation owing $45m, 30 staff sacked on the spot on Friday morning

On Friday morning, 30 staff rocked up to a factory expecting “work as usual” but instead learned they had no jobs to return to right before Christmas.

All employees at a Sydney joinery and manufacturing business heavily involved in corporate and commercial construction have lost their jobs and the firm has ceased to trade.

On Friday morning, 30 cabinet makers rocked up to the Wetherill Park factory of GDK Group expecting “work as usual”.

But just 15 minutes earlier news.com.au had revealed that 11 companies linked to GDK Group had gone bust, after multiple court actions with debts in excess of $45 million.

The company director and chief financial officer, Nicholas Kalikajaros, called a meeting at the front of the factory and informed everyone that they no longer had jobs.

Anton*, a staff member who preferred to remain anonymous, said he and his colleagues of many years learned just before 8am that they had been “unceremoniously dumped” and had until 8.30am to pack up their tools.

“This morning it was very sad to see grown men crying,” Anton told news.com.au.

Staff were also informed that they will not be receiving pay for this week or last week.

At its peak, the GDK factory had around 100 staff and 50 contractors but current employees say that number has shrunk to around 30 amid mass resignations.

The Wetherill Park factory.

A contractor, Mario*, who was owed money, rushed to the site on Friday morning and was met with the despondent faces of ex-staff.

“I went there to chase money up and as I got there all employees had been terminated and everyone was being escorted out with their belongings,” he said to news.com.au.

In May, Himlad Pty Ltd went into voluntary liquidation with debts of $29.8 million, according to a statutory report filed with the corporate regulator.

Since then, the tax office has forcibly wound up multiple other companies in the Federal Court, as recently as this Tuesday. Initial estimates from one liquidator put the new debts at more than $15 million for four of the most recent company collapses.

Staff have been left fuming as they are owed $2.1 million, including $885,000 in superannuation which is not recoverable through government rescue schemes.

“It’s been on the cards for quite some time,” Anton said, but added that it was still devastating.

Another ex-employee said there were “a lot of grown up men in tears”.

“These people have kids as well,” he added. “It came at the worst time of the year.”

Nikolas Simic and Nicholas Kalikajaros, the two directors linked to the companies, did not respond to requests for comment and no action has been taken against them personally. The company was also contacted for comment but its phone lines rang out.

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Staff are devastated.

On Friday morning, 30 staff rocked up to a factory expecting “work as usual” but instead learned they had no jobs to return to right before Christmas.

In a bizarre twist, several of the companies have been named after obscure references from the iconic book series The Lord of the Rings, such as Himlad, Hithlum, Thargeliou, Belegaer, Ossiriand, Nevrast, Dorlomin and Avernien.

The strange business names left one staff member, who is owed $25,000 from unpaid superannuation, “confused” and unaware of some of the companies.

In May, Himlad Pty Ltd formerly trading as Imprint Australia went bust, but business continued as normal, with workers’ payroll and leave entitlements switching over to another company called Joinery Manufacturing Solutions Pty Ltd.

Then in July, three other companies went into voluntary liquidation – Nevrast Pty Ltd formerly trading as Imprint Furniture, Dorlomin formerly trading as Imprint Systems and Avernien Pty Ltd formerly trading as GDK Ventures. Liquidation reports say these companies were part of the GDK Group.

Last week, the Federal Court ordered two more companies to go belly up and Henry McKenna of insolvency firm Vincents was nominated as the liquidator.

Hithlum Pty Ltd formerly known as GDK Group (Global) Pty Ltd was ordered to go into liquidation due to unpaid tax debts of $261,000 while Thargeliou Pty Ltd formerly known as Imprint Street (Australia) Pty Ltd had $90,000 in unpaid taxes.

Last Friday, Ossiriand Pty Ltd was ordered to go into liquidation. The liquidators Alan Hayes and Wayne Marshall of Hayes Advisory have been contacted for comment.

On Tuesday, another slew of businesses collapsed by court order – GDK Group Pty Ltd, Belegaer Pty Ltd, GDK Projects Pty Ltd and GDK Holdings.

The appointed liquidators, Jonathon Colbran, Tristana Steedman and Richard Stone of RSM, told news.com.au these four firms “have total creditor claims likely to exceed $15 million”. Of that, the ATO is owed at least $500,000.

The tax office has also initiated winding up proceedings against Joinery Manufacturing Solutions Pty Ltd, the entity staff are now employed by, with a directions hearing set for December 19.

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