Ash Fabics, Richard Edwards: Home Appliances Plus probe continues

The liquidator of a doomed Tasmanian company which collapsed due in part to “negative publicity” says the full scale of its debts are yet to be known. But the company spent big on itself.

Devonport businessman Ashley James Fabics. Picture: Facebook

A Tasmanian e-commerce company which collapsed last month owing at least $1.9m amid a flurry of unfulfilled orders and a bucketing on A Current Affair spent more than $300,000 on shares, purchased real property and at least one company vehicle, a new report says.

Steel & Water Pty Ltd, which traded as Home Appliances Plus, an online retailer, collapsed on October 10.

It is owned by Tasmanian duo Ashley James Fabics, 45, formerly of Devonport but understood to be living in Melbourne, and Richard Douglas Edwards, 41, of Launceston. The pair were the company’s sole directors.

According to a new report by Gold Coast liquidator Matthew Bookless, he is yet to assess the full scale of the company’s debts, which the directors estimated to be $1,897,735.

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However, “It is expected most creditors whose claims relate to unsatisfied customer orders will not presently have an advised debt in the company’s records,” Mr Bookless said.

“This is because all orders were handled through an external e-commerce platform, Shopify (which is owed $600,000 by the company).

“I have requested access to the company’s e-commerce account so I may identify any additional creditors and verify creditors’ claims.”

Home Appliances Plus director Richard Douglas Edwards. Picture: Supplied

Mr Bookless said the company had a number of assets for him to probe.

The pair’s law firm, MKW Legal, is said to hold funds in trust from the sale of a vehicle owned by the company. The company allegedly also has “an interest in real property”. And, finally, the company allegedly owns more than $300,000 worth of shares in listed and unlisted companies.

Mr Bookless said he would provide a fuller picture of the assets and debts of the company in his next report to creditors.

According to Mr Bookless’ report, Home Appliances Plus operated on a “drop shipping” model, wherein “a customer would place an order through the company’s website, which would be sent directly through to the supplier of the relevant item to ship the order directly to the customer”.

“The company did not hold any stock at any time,” he said.

The two directors told Mr Bookless the collapse of their company was due to “the overwhelming growth of the business in a short time frame, a dispute with a major supplier, cashflow issues and poor online publicity caused by customers complaints”.

The next report will be delivered by January 10 next year, Mr Bookless said.

Originally published as Ash Fabics, Richard Edwards: Home Appliances Plus probe continues