All staff sacked on the spot, $2 million company collapse

A string of companies in Victoria have collapsed, leaving customers in the lurch and staff sacked on the spot.

A string of companies linked to a heating and cooling business have collapsed in recent months, leaving customers and staff in the lurch.

News.com.au can reveal that eight companies which made up Victorian-based business Pact Services Group collapsed into liquidation two months ago. Pact Services has been around as a whole for nearly 50 years, news.com.au understands.

The companies, headquartered in Dandenong in Melbourne’s southeast, owe more than $2 million to over 100 creditors once all their debts are added up.

Steven Atkinson was the sole director of all the Pact companies, which specialised in offering solar, heating, and airconditioning to customers and had contracts in place with builders around Melbourne.

The list of collapsed businesses include Pact Heating and Cooling, Pact Commercial, Pact Home Solutions, Pact Solar, Pact Service and North East Heating, Cooling and Solar.

A former staff member, Hunter*, who did not want to use his real name, lost his job on the spot when the group went into liquidation.

He told news.com.au the company’s closure “has left everyone high and dry without wages, superannuation. Plus I know the company owed a lot with suppliers and lenders”.

The termination notice staff received. Picture: Supplied

Indeed, the appointed liquidators, Jason Stone and Paul Allan of restructuring firm PKF, have released multiple reports which paints a picture of the many debts the group of businesses owe.

Creditors include staff, suppliers, landlords, utilities companies, banks and the tax office.

Pact Heating and Cooling owes the most, coming in at $1.49 million to 73 creditors.

Next was Pact Home Solutions, which owes $503,000.

Then Pact Commerical owes $90,000 to 37 creditors, while Pact Solar owes $43,000 and Pact Maintenance Services has debts of $25,000.

Some debts have been admitted as amounts of just $1, which appears to be because the debts are being disputed, so the final number owed may be higher.

News.com.au contacted the liquidators for comment.

“It really fell on hard times in October 2023,” Hunter said, who understood the company has been in business one way or another for the past 47 years.

“They did a round of redundancies at the end of 2023 and cut maybe 30 per cent of the staff,” he continued.

“There were 30 people who worked in the office. So maybe eight or nine got made redundant.”

Just a few short months later, the remaining staff members, including Hunter, were also terminated.

“We have been advised that you are a former employee of the company and company records indicate you have accrued entitlements owing to you as an employee,” a letter from the liquidators read.

“There are presently insufficient funds in the liquidation to discharge your outstanding employee entitlements, In this regard, we request that you proceed to lodge a claim with the Department of Employment”.

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

Staff said the group of companies had been trading for nearly 50 years.

Customers started to realise something was wrong when they saw this sign appear on the shop front of one of Pact’s subsidiaries. Picture: Supplied

Just before the companies went bust, Pact Services Group Pty, trading as North East Heating Cooling Solar, came under scrutiny after quietly shutting its doors.

The company closed down its shopfront and didn’t inform customers.

One man told media at the time he had paid $3300 for solar panels to be installed but had not heard anything from the company.

He only noticed the business had closed because of a sign plastered over its door.

Earlier this year, news.com.au reported that another company working in the solar energy space, G-Store, headquartered in Melbourne’s Malvern East, had also collapsed.

The liquidated business owed 139 unsecured creditors $2.2 million.

[e-mail]