Shannon Solutions earthmoving doors close on 30 jobs

IN WHAT could only be the worst Christmas "gift" for a number of Toowoomba families, a city company has closed its doors leaving up to 30 people without jobs.

Shannon Solutions earthmoving business which is based in Carrington Rd closed its doors last week because of financial difficulties stemming from the problems of a national company with which it did business.

Shannon Solutions had been contracted by ITAC Services to provide equipment to move drill-rigs and was ITAC's preferred contactor in the Surat Basin.

Melbourne-based ITAC was placed in voluntary administration on December 9, claiming it had fallen victim to a slump in crude oil prices which had affected its cash flows as customers quit projects.

The Chronicle believes Toowoomba contractors like Shannon Solutions were owed hundreds of thousands of dollars which in turn put its business in jeopardy.

Calls to owner Bill Shannon went unanswered yesterday, but a former employee, who asked not to be identified, said Mr Shannon was devastated in having to close the doors to his business.

"Bill Shannon has worked hard over 20 years to build up the company and is well respected in Toowoomba," the former employee said.

A number of other contractors in Toowoomba have also been left with outstanding debts because of ITAC Services going into voluntary administration.

One transport company owner told The Chronicle he was owed more than $300,000 and that, because he hadn't been paid, up to seven people he had sub-contracted were out of pocket as well.

"They had a meeting the other day and they said ITAC would eventually pay us, but when?" he asked.

A media report at the weekend claimed ITAC Services' appointed administrator Ferrier Hodgson had said "the firm has received 'really good interest' from prospective buyers in the sale process for ITAC, giving confidence the business can be sold as a going concern rather than be liquidated for a sell-off of assets".

The report went on to say expressions of interest in ITAC Services were open until yesterday and that a result from the sale process was expected in January.



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