Crunch meeting for creditors of failed Red Rooster franchisee

Creditors affected by the collapse of a company that ran seven Red Rooster outlets across the Sunshine Coast and north of Brisbane will learn more about its demise.

INFORMATION COMING: Creditors are set to meet again after the collapse of a company that operated seven Red Rooster outlets in the region.

CREDITORS affected by the collapse of a company that ran seven Red Rooster outlets in the area will learn more about its demise, including its financial situation prior to folding.

A second meeting of creditors of Sunstate Foods Pty Ltd has been called in Brisbane on November 19, with liquidators set to deliver an update on the state of the company’s finances and business affairs prior to its collapse into administration last month.

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Sunstate Foods had operated seven Red Rooster outlets in the southeast, including Deception Bay, Burpengary, Currimundi, Buderim, Sunshine Plaza, Noosaville and Noosa Civic.

Sunstate Foods was placed into administration on October 15, with the Courier-Mail reporting staff had been owed more than $200,000 in wages and superannuation, and 39 creditors were owed $379,645, according to a report on the company’s activities.

Craveable Brands, Red Rooster’s parent company, stepped in following the closures, quickly reopening six of the seven stores and covering employee costs.

Next week’s meeting was set to be held at Robson Cotter Insolvency Group’s office in Woolloongabba at 11am on Tuesday, November 19.

Administrator William Roland Robson advised the purpose of the meeting was for creditors to receive a report from administrators outlining the company’s business, property, affairs and financial circumstances.

Creditors would also receive advice from administrators on whether it would be in creditors’ interests to either execute a deed of company arrangement, end the administration, or wind the company up. It was envisaged creditors would also resolve their decision on these options.

Details of any transactions identified that appeared to administrators to be a voidable transaction, which could be recoverable by liquidators, would also be provided to creditors.

Remuneration for the administrators, and future remuneration of liquidators if appointed if the company was to be wound up, and, if required, the appointment of a committee of inspection and its members, were also on the agenda for the meeting.

Creditors wishing to attend needed to submit proofs of debt and proxies to the administrator by 4pm on November 18.

Originally published as Crunch meeting for creditors of failed Red Rooster franchisee