Month of misery as restaurants and retailers fail
A steep increase in corporate failures is expected in the coming weeks as debt holidays introduced during COVID-19 come to an end.
In December there were 46 company liquidations and five administrations across Queensland with high profile closures including national lingerie retailer Big Girls Don't Cry (Anymore), Noosa eatery Madmegs & Co and a key player in the job training sector Job Coaching Australia.
Revive Financial partner Jarvis Archer said a buyer had been found for the Big Girls brand but with the Federal Government's temporary relief from bankruptcy notices, statutory demands and insolvent trading ending on January 1, the next month would see businesses facing different circumstances.
"These changes coincided with the rolling back of rent relief, other government stimulus measures and the Australian Taxation Office recommencing action to recover tax debts," said Mr Archer.
Mr Archer said the reversion of the laws meant that debts could now be pursued against both companies and individuals.
"Debt collectors and solicitors have indicated they have a number of statutory demands to recover outstanding debts at the earliest opportunity," he said.
A statutory demand gives a company 21 days to pay an outstanding debt otherwise the creditor can file a winding up application with the court.
"This means that three to four weeks into January there may be a wave of winding up applications filed against companies," he said.
"Importantly a business with tax debts will need to enter into a payment plan with the ATO. If it is unable to agree to such a plan it will need to consider its insolvency options."
Mr Archer said that while there had been 3000 fewer insolvencies since March 2020, companies that would have ordinarily had a liquidator or administrator appointed were still expected to require an insolvency appointment
"This is on top of insolvencies returning to normal annual numbers of approximately 8000," he said. "It means a steep increase in insolvencies is expected though those most at risk were probably struggling at the beginning of COVID anyway."
Mr Archer said that while industries such as construction and transport had experienced strong trading other sectors such as tourism and hospitality were more vulnerable.
QLD companies in liquidation in December
Quadra Pacific (Aust.) Corp. Pty Ltd
ACN:060 599 420
Compact Services Queensland Pty Ltd (In Liquidation)
ACN: 120 906 354
Belocal Today Australia Pty Ltd
ACN: 626 145 659
Cairns Auto Worx Pty Ltd (In Liquidation)
ACN:607 594 883
Top Plaster Pty Ltd
ACN:140 524 714
Isup Pty Ltd (In Liquidation) trading as The Computer Market
ACN:129 270 686
Zuess Communications Pty Ltd
ACN:619 754 193
Auspac Hospitality Management Pty Ltd
ACN:615 911 709
JOB COACHING AUSTRALIA PTY LTD
ACN:624 587 748
ELLJAY TRANZ PTY LTD
ACN:164 195 975
Ramaco Pty Ltd (In Liquidation)
ACN:134 340 551
CIS Plumbing Australia Pty Ltd
ACN:627 746 865
Abualtimman Services Pty Ltd
ACN:166 592 392
Airey Constructions Pty Ltd
ACN:162 617 487
Goodidja Productions Pty Ltd
ACN:151 798 275
Ambon Pty. Ltd.
ACN:009 792 563
ATMR Holdings (Aust) Pty Ltd
ACN:146 183 128
Ghostgum Investments Company Pty Ltd
ACN:164 359 139
JELLYB PTY LTD trading as Formerly Known as 'Coutis International Pty Ltd'
ACN:600 816 224
A.C.N. 605 014 337 PTY LTD (formerly Ready 24 Gym Pty Ltd)
ACN:605 014 337
CTR Rentals Pty Ltd (In Liquidation)
ACN:010 413 215
A To Z Motor Parts Pty Ltd
ACN:130 537 576
Selling 4 U Pty Ltd (In Liquidation)
ACN:115 073 713
LTL Enterprise Pty Ltd
ACN:105 438 560
Vlushe Cosmetics Pty Ltd trading as "Vlushe The Cosmetic Label" and "Vlushe Cosmetics & Blowdry Lounge"
ACN:621 668 559
Decretum Pty Ltd trading as Cairns Dive Centre
ACN:010 881 348
IRONBARK LUMBER COMPANY PTY LTD
ACN:120 338 481
TAG CQ PTY LTD
ACN:616 156 293
TKD PTY LTD
ACN:159 983 196
WAN CHIAHSING BUILDING CONSULTANTS PTY. LTD. trading as Mongolian King BBQ Restaurant
ACN:056 472 390
Memora Projects Pty. Ltd.
ACN:610 146 837
TACKERS FOUNDATION LIMITED
ACN:099 078 574
Redlands Auto Electrical Pty. Ltd.
ACN:010 903 527
Ashe Group Pty Ltd
ACN:620 556 514
BIG GIRLS DON'T CRY (ANYMORE) PTY. LTD.
ACN:060 578 707
Queensland Demolition and Civil Pty Ltd
ACN:629 711 502
FORMWORK SOLUTIONS QLD PTY LTD (IN LIQUIDATION)
ACN:637 566 968
MADMEGS & CO PTY LTD trading as MADMEGS & CO
ACN:612 185 289
SG PROJECTS (QLD) PTY LTD (IN LIQUIDATION)
ACN:615 730 982
MJ Energy Pty Ltd
ACN:168 736 150
Besst Recruitment Pty Ltd
ACN:626 210 222
ACN 122 788 452 Pty Ltd (In Liquidation)
ACN:122 788 452
CHI MC PTY LTD trading as Chi Mc Restaurant and Bar
ACN:611 390 857
MOLLISON QLD PTY LTD trading as The Burrow
ACN:612 381 263
Contented Chef Pty Ltd
ACN:604 822 693
613157412 Pty Ltd
ACN:613 157 412
QLD companies in administration in December
Hennock & Sons Pty Ltd
ACN:133 085 319
Vernons Electrical & Renovations Pty Ltd
ACN:142 077 227
ICRA Rolleston Pty Ltd
ACN:106 260 600
Precision Mining and Drilling Holdings Pty Ltd
ACN:161 952 361
Watjico New Pty Ltd (Administrator Appointed)
ACN:620 647 029
Originally published as Month of misery as QLD restaurants, retailers fail