SA builders take out personal loan to stay afloat as fast food chain owners of Mr Potato owe nearly 60k

A family-owned construction firm says it’s been forced to take drastic measures after an Adelaide-founded hot potato chain failed to pay its bills.

MR Potato Founders Jess Davis and Tyson Hoffmann at their store. Picture: Tricia Watkinson

The owners of an SA family business claim they have been forced to take out a personal loan to keep their business afloat, as they chase money owed to them by a fast food chain currently in liquidation.

Family-owned construction company Luxury Projects completed the shop fit-out for the Mr Potato store in Parafield in December 2023, but nearly two years later, claims it has not been paid for its work.

Mr Potato founders Tyson Finau and Jess Davis

Documents sighted by The Advertiser show that the company is still seeking $57,238.06, and that a payment plan set up between Luxury Projects and Mr Potato founder, former Adelaide 36er Tyson Hoffmann, had failed to be fulfilled.

Mr Potato went into liquidation in June, with Luxury Projects listed as a creditor, with the owners disputing the total amount of money owed to Luxury Projects.

One of Luxury Projects owners Allie Burns told The Advertiser the company had not responded to requests for payment, and blocked her on social media.

“I’ve emailed him several times saying that he still needs to pay his debt,” she said.

“It’s not just not going to go away.”

Ms Burns said Luxury Projects was paid in part by Mr Hoffmann so that the Parafield store could open, but multiple payment plans had fallen through.

“That’s what we said to him, we’re not allowing him to get that shop opening until he pays something,” she said.

The Burns family, owners of the construction company Luxury Projects: Allie and Patrick with Mother Sharyn completed the shop fit out for the Mr Potato store in Parafield in December 2023, but nearly two years later, have not been paid for their work. Picture: Emma Brasier

“He initiated a payment plan with us this year of $500 a week, and we thought ‘bit of a joke’, but we accepted it because it was better than nothing.

“He did start paying that for a month and then he stopped paying again.”

Ms Burns said the Luxury Projects owners, consisting of herself, her mother and brother, had taken personal loans to pay their subcontractors and builders.

“We had no choice because if we didn’t take out our loan we would have had to shut the business down,” she said.

Mr Hoffmann said Luxury Projects had been listed as a creditor when Mr Potato went into liquidation, and that liquidators were undertaking the “standard process” of recovering company assets, including $450,000 he said was owed to Mr Potato by former franchisees.

He also alleged that some of the money Luxury Projects was asking for related to work that hadn’t been done.

Mr Potato Glenelg exteriors and sign. Picture: Ben Clark

“It’s worth noting that more than half of the debt claimed by Luxury Projects relates to accrued interest charges applied on a weekly basis, and approximately $16,000 relates to work that was never carried out,” he said.

“The liquidators will review all claims and transactions as part of their process. Any funds recovered will be distributed according to the priority order set out in the Corporations Act.”

Ms Burns said: “We had to do a custom order for materials, and I wrote to him because I couldn’t get a refund.

“He gave authority saying he would still pay for the materials for the stuff around him pulling us out of doing the project.”

Correspondence between the two parties seen by The Advertiser indicated that Mr Hoffmann would pay for the materials.

Adelaide’s two Mr Potato stores “temporarily closed” in June after the companies behind the stores went into liquidation.

Originally published as SA builders take out personal loan to stay afloat as fast food chain owners of Mr Potato owe nearly 60k