WridgWays still operating despite $15m collapse of subsidiary
THE operators of national removal business WridgWays say the business is continuing to operate despite a related company collapsing with debts in excess of $15m.
THE operators of national removal business WridgWays say the business is continuing to trade despite a group company collapsing with debts in excess of $15 million.
Liquidator Tim Brace, of SV Partners, took control of Relocation Logistics Australia, formerly knowns as WridgWays, earlier this month after creditors moved to wind up the company.
Relocations Logistics is a company within the WridgWay group, an iconic removal business that can trace its roots back 128 years.
Mr Brace has told creditors that the directors of Relocation Logistics have blamed detrimental trading conditions due to COVID as a key factor in the company’s demise.
He said he understood the WridgWays business continued to be operated by other associated entities within the group.
Founded in 1892 by Ernest Wridgways, Melbourne-based WridgWays was taken over by global logistics group Santa Fe in 2010 but later sold to current director Kobus Fourie in a management buyout in 2018.
Mr Brace said the Relocation Logistics directors also blamed liabilities arising prior to the acquisition of the company in 2018 for the company’s failure.
He said he was continuing his own investigations into the company’s collapse with a report to creditors due before March next year.
The company held multiple leases for premises around Australia including depots in Cairns Acacia Ridge and Garbett in Queensland, Villawood, Thurgoona and Tomago in New South Wales and Perth Airport and Karratha in Western Australia.
Mr Brace said that the company operated two bank accounts, of which one only had a balance of $22. It is not known how much the balance was of the other account. “A detailed review of the bank accounts will form part of our investigations,” he said.
Both WridgWays Australia and WridgWays Pty Ltd are listed as related party creditors of Relocations Logistics, claiming it owes them a combined $9m.
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