The latest lockdown could push some firms over the edge as dwindling cashflow exacerbated their already weak financial position.
The latest lockdown could push some firms over the edge as dwindling cashflow exacerbated their already weak financial position.

More businesses collapse in March

The latest Brisbane lockdown could push more firms over the edge as dwindling cashflows, particularly in the hospitality sector, exacerbated their already weak financial position.

A total of 44 Queensland firms entered either liquidation or administration in March, a 22 per cent increase on the 36 insolvencies in February, amid the end of JobKeeper subsidies and debt moratoriums.

A total of 40 companies went into liquidation over the past month and administrators were appointed to four companies.

Revive Financial partner Jarvis Archer said the latest lockdown would be difficult for businesses to handle, especially those in the hospitality and events sectors.

"At risk businesses are already running on tight cashflow and a reduced buffer to overcome disruptions," Mr Archer said. "While these businesses may be able to withstand a short closure, a key concern will be whether the current lockdown period is extended."

He said there had been a worrying trend of businesses letting their accounts, and also their tax lodgements, fall behind.

"We are seeing unprofitable businesses with no realistic prospect of paying their ATO debts commonly in the range of $150,000 to $300,000," said Mr Archer. "It seems that rather than the end of JobKeeper forcing business closures, it will be the eventual activity of the ATO, banks and other finance companies recommencing recovery efforts."

He said despite the challenging environment, there was now a greater willingness to accommodate flexible payment terms in the business community. "It's often preferable to get paid over time, and keep a customer, than to write-off the relationship," he said.

 

Revive Financial partner Jarvis Archer said the latest Brisbane lockdown would be difficult for businesses to handle, especially in the hospitality sector.
Revive Financial partner Jarvis Archer said the latest Brisbane lockdown would be difficult for businesses to handle, especially in the hospitality sector.

 

Three locally-based building firms went under this month, reflecting continuing tough conditions in the sector.

Brisbane-based GW Civil Contracting collapsed owing creditors $3.1m after COVID-19 delayed projects and it lost its JobKeeper eligibility.

Worrells liquidator Lee Crosthwaite told creditors that mounting losses meant shareholders were not prepared to further fund the company's operations.

Gold Coast-based Amphibia Engineering, which specialised in constructing tiny homes, went bust leaving a string of angry customers behind and estimated debts of $1m.

The company, which traded under the name Technopods, earlier this year applied for Federal Government temporary debt relief but was unable to keep its doors open.

Amphibia, whose directors are husband and wife team Jason and Kerry Caruana, specialised in custom built "tiny homes for use on land, water and wheels."

About 20 Technopod clients, who paid between $15,000 and $81,000, complain they either never received their homes or what they were promised.

Newstead-based Arcren Building was last week placed in liquidation with Bill Robson, of Robson Cotter Insolvency Group now in control of the firm.

According to a report to creditors filed with ASIC, Arcren owes contractors including electricians, plumbers, steel and concrete suppliers more than $420,000.

Arcren claims in turn it is owed about $600,000 in relation to what are described as "inflated claims" from a civil works contractor building a warehouse for the firm at Virginia.

CreditorWatch chief executive Patrick Coghlan said accommodation along with food and beverage providers were struggling due to international travel restrictions, while retailers were suffering as more people worked from home.

"The industries most impacted by COVID restrictions last year remain front of mind as those most likely to default on payments," said Mr Coghlan.

The franchisee operating a popular Shingle Inn cafe in Brisbane's CBD went bust earlier this month, joining a growing list of retailers in the area falling victim to the COVID-19 downturn.

Worrells Solvency and Forensic Accountants partner Nikhil Khatri was appointed liquidator of Tafani Corporation Australia, trading as Shingle Inn Brisbane Square, on Monday.

Mr Khatri said the company's debts included $145,000 owed to the Shingle Inn franchisor, which related to outstanding rent for the cafe's leased premises at Brisbane Square, a retail and commercial office building in Ann St.

QLD LIQUIDATIONS MARCH

Nanport Pty Ltd trading as "Nanport Pty Ltd"

ACN: 010 847 891

Reinhold Investments Pty Ltd

ACN: 606 788 087

333 Broadlea Pty Ltd

ACN: 624 378 623

GW Civil Contracting Pty Ltd

ACN: 082 690 551

ACN 063 228 400

ACN: 063 228 400

EEBP Group Pty Ltd

ACN: 633 629 946

Independent Plastics Group (IPG) Pty Ltd

ACN: 606 964 621

M & T Kelly Investments Pty Ltd

ACN: 137 525 752

Deekay Pty Ltd

ACN: 168 620 559

Prentice Enterprises (QLD) Pty Ltd

ACN: 609 495 776

Dixon Properties Pty Ltd

ACN: 009 917 328

Tepee Manufacturing Co. Pty Ltd.

ACN: 009 668 348

Ascend Media Pty Ltd

ACN: 614 306 688

Kee Development Pty Ltd

ACN: 619 182 811

ACN 080 483 487 Pty Ltd trading as Advanced Fire Protection

ACN: 080 483 487

Triplerj Pty Ltd

ACN: 623 308 949

BOBRAY Pty Ltd

ACN: 009 754 956

A.C.N. 155 018 394 Pty Ltd trading as Formerly Known As Blue Fin Boats Pty Ltd

ACN: 155 018 394

Blue Ribbon Specialised Services Pty Ltd trading as Blue Ribbon Specialised Services

ACN: 092 835 893

Surfside 2021 Pty Ltd, formerly known as Surfside Seven Pty Ltd & Bayside Capital Pty Ltd

ACN: 102 355 420

Wavecrest Pty Ltd

ACN: 010 279 115

Amphibia Engineering Pty Ltd trading as Technopods

ACN: 604 377 451

Memtech Holdings Pty Ltd

ACN: 623 365 168

Carano Pty Ltd

ACN: 098 436 910

Cape Three Points Pty Ltd

ACN: 000 607 527

Asset Solar Tech Pty Ltd

ACN: 630 625 544

Queensland Solar and Storage Pty Ltd

ACN: 625 247 949

A.C.N. 009 671 434 Pty Ltd

ACN: 009 671 434

Darlex Holdings Pty Ltd

ACN: 130 396 815

CND Civil & Demolition Pty Ltd

ACN: 643 150 538

Landmann Australia Pty Ltd

ACN:605 967 468

Tafani Corporation (Australia) Pty Ltd trading as Shingle Inn Brisbane Square

ACN:605 783 220

MFG Buderim Pty Ltd trading as My First Gym Maroochydore

ACN:627 160 598

French-Sinclair Holdings Pty Ltd

ACN:624 003 970

48 Kingscliff Street Pty Ltd

ACN:139 213 700

ACN 612 095 039 Pty Ltd trading as Formerly known as King Marketing Systems Pty Ltd.

ACN:612 095 039

Easier Group Holding Pty Ltd

ACN:642 497 747

J W & D M Courtney Pty Ltd

ACN:002 049 578

ENCIO Pty Ltd

ACN:636 620 785

Beleze International Pty Ltd (In Liquidation) trading as Michelle's Skin & Body Solutions (Townsville)

ACN:134 235 644

QLD ADMINISTRATIONS MARCH

Bayside Gate Frames Pty Ltd trading as "Bayside Fencing Products", "Direct Factory Outlet Concrete Sleepers, Landscaping And Building Products" and "Concrete Sleeper Retaining Walls Brisbane"

ACN: 146 901 706

TBC Supplies QLD Pty Ltd

ACN: 604 823 707

ACN 159 582 279 Pty Ltd (Administrators Appointed) - formerly Clarence Professional Offices (Brisbane) Pty Ltd

ACN: 159 582 279

Raging Thunder Retail Pty Ltd

ACN:116 275 006

Originally published as Full List: 44 Qld firms collapse in March



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