Collapsed group of businesses owe $26m, customer loses $14k

Customers paid tens of thousands of dollars after the company insisted it was doing just fine. Then it went bust.

The debts of a collapsed group of NSW businesses have hit a whopping $26 million while customers have been left tens of thousands of dollars out of pocket.

Earlier this year, news.com.au reported that a western Sydney factory had closed down and all workers had been terminated on the spot.

The factory made up part of the Apollo Group, which manufactured kitchens, stairs and cabinets, and installed these in customers’ homes.

Each pillar of the group fell down in quick succession and the liquidators of one of the entities recently revealed to news.com.au they had discovered a further $3.3 million of debt owed to creditors, bringing the grand total to the $26 million mark.

One customer, Veronica, 62, has lost $14,000 after paying a deposit for a kitchen she will never see.

“I wanted a brand new kitchen. They (Apollo) sold the world and delivered nothing,” Veronica lamented.

Customers were at first informed the Apollo Showrooms branch would continue even though the manufacturer had gone bust. A month later, this business also went into liquidation.

The payments that Veronica made to Apollo Showrooms before the business went bust.

In April, Apollo Kitchens (NSW) Pty Ltd went into liquidation with debts of $11.2 million.

All 65 of its workers were called to the front of the factory and learned they were jobless.

The head office of the business, called Brownlen Pty Ltd, also went bust at the same time, leading to 19 more job losses and $11.5 million more owed to creditors.

Customers of a related company, Apollo Joinery Showrooms, grew nervous but they were assured that the business could continue operating.

“We were concerned,” Veronica recounted.

The showroom company said they had lost the joinery arm of their business so once they found a new joiner, they would be back on track and able to provide her with a kitchen.

Still not satisfied, Veronica requested a refund.

And then, just a month later, Apollo Joinery Showrooms also went into liquidation, appointing Edwin Narayan and Grahame Ward of insolvency firm Mackay Goodwin.

“It’s the most appalling in terms of service,” Veronica said. “You feel completely robbed and cheated.”

Veronica claims she saw a top secret document which shows that more than 20 other customers are in the same boat as her.

The liquidators revealed to news.com.au that 10 employees were let go in the wake of the company’s collapse.

The staff at Apollo Joinery Showrooms, which has since changed its name to its business number 106715379 Pty Ltd, are owed $490,000 in unpaid wages and superannuation.

A further $2.8 million is owed to 28 other unsecured creditors.

Of that, $2.6 million is owed to a related entity – Apollo Kitchens NSW Pty Ltd.

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The failed business has debts of $26 million.

Peter Bader, pictured, is the director of the Apollo Group.

Those liquidators, Mr Narayan and Mr Ward, were also appointed to another related entity that went bust at the same time, called Apollo Stairs.

“We are aware that the business was sold prior to our appointment as liquidators, and our investigations remain ongoing,” they said to news.com.au.

“Based on the company records in our possession, there are no entitlements owing. Our office has also not received any claims from any former employees.

“The ATO is also yet to submit a claim in the liquidation.”

The director of the Apollo Group, Peter Bader, was contacted for comment.

The Apollo Group has completely collapsed.

News.com.au previously reported that some employees of the Apollo Group suspected things were not right weeks before all the businesses started going bust.

Factory worker James* said his pay was a day late. He was then called into a meeting at the factory where he learned he and others were unemployed, effective immediately.

“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.

Another staff member, Ron*, who preferred to stay anonymous for future job prospects, hasn’t received any superannuation for 18 months, not since October 2022.

“All staff are absolutely disgusted,” Ron told news.com.au at the time.

*Names withheld for privacy reasons.

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Originally published as Collapsed group of businesses owe $26m, customer loses $14k