A winding up application has been lodged against WridgWays Australia

Freight provider Pacific National has lodged a winding up application against removalist WridgWays, which has operations in all states.

A winding up application has been lodged for WridgWays Australia Pty Ltd.

Freight provider Pacific National has lodged a winding up application against removalist WridgWays, which says it is in the final stages of a potential sale of the business.

The quantum of the debt, and whether it is in dispute, is currently not known.

WridgWays said in a statement it was in the latter stages of a bid to sell the business, with more details to be revealed in coming days.

“WridgWays Australia is continuing a re-engineering of the business in order to successfully overcome the impact of COVID-19 on the entire relocation services industry,’’ chief executive Kobus Fourie said.

“WridgWays was significantly impacted as a result of its exposure to international partners, as it supported Australians to relocate across the world.

“WridgWays is currently in advanced discussions regarding an acquisition of WridgWays that we hope to be able to announce over the coming days.

“WridgWays understands this is a challenging time for all our partners and suppliers. We are working with creditors over any undisputed debt and are keen to achieve a mutually acceptable outcome.’’

The Australian has contacted Pacific National and is awaiting a response.

WridgWays has been in operation since 1892, when it was founded by Ernest WridgWays.

It has operations in all Australian states and territories and also offers international relocations.

A media statement on the WridgWays website states that two of it subsidiaries were liquidated in February this year.

“Following ongoing discussions between administrators and creditors regarding the voluntary administration of two non-core subsidiary business entities (WridgWays Pty Ltd and WridgWays People Pty Ltd), a mutually agreeable outcome was unable to be achieved,’’ the statement says.

“In accordance with the standard processes, the two entities will now be placed into liquidation.

“The central trading entity WridgWays Australia Pty Ltd and the business as general continues to operate as usual, with no impact to customer services or supplier agreements. We are eager to move forward with several new strategies and business improvements designed to adapt to the extraordinary business conditions of a COVID-19 trading environment.’’

WridgWays Australia Pty Ltd is the entity against which a winding up application was lodged by Pacific National on June 17. A winding up application was also lodged against the company in March by Powerpak Group.

The Courier Mail reported in Late December that another company related to WridgWays, Melbourne-based Relocation Logistics Australia, had collapsed, owing creditors more than $15m.

WridgWays’ sole director Sarel Fourie is also a director of Relocation Logistics Australia.

WridgWays Australia and WridgWays Pty were listed as a related party creditors of Relocation Logistics, claiming the company owes them more than $9m.

The Cairns Post reported in late May that Paul Nealon, who had recently located to the area, was at that stage still waiting for his possessions - including his spare prosthetic leg.

Mr Nealon said he had trusted the company based on its past reputation and did not opt for insurance.

Paul Nealon was still waiting for his possessions late last month. Picture: Stewart McLean

Repeated emails between the disgruntled client and WridgWays has revealed his possessions were in Rockhampton or Townsville as the company tried to settle a dispute with a landlord.

Despite the company’s repeated assurances that the container was en route, Mr Nealon said in late May he had seen neither hide nor hair of his furniture and clothes.

“Yet another week passes and nothing,” an email from Mr Nealon to WridgWays management dated May 24 said.

“Can somebody PLEASE contact me and take some kind of responsibility for this.”

He received no reply.

“I just have a pair of jeans, swimmers and a T-shirt,” Mr Nealon said.

“I can’t do anything.”

And having spent most of his ready cash on his new apartment, a shopping spree is out of the question. The removals cost Mr Nealon $2600.

News Corp Australia on Monday spoke with another disgruntled customer, who said he had moved from Darwin to Rockhampton in April, and was still waiting for his possessions.