18.5 C
Saturday, April 13, 2024

Creditors owed$350,000

Creditors of Naracoorte’s recently closed Morris Bakery are facing a significant financial setback, with debts totaling over $350,000. Investigations into the bakery’s liquidation process reveal that the company lacked insurance coverage for employee dishonesty.

Recent updates from this publication shed light on the progress of the liquidation proceedings, indicating that the company’s director has submitted a comprehensive report on the business’s operations and assets to the Australian Securities and Investments Commission.

The closure of the beloved local bakery on February 5 stemmed from alleged theft amounting to around $300,000 by a former employee. Liquidator Tarquin Koch confirmed ongoing investigations by the South Australia Police into the purported embezzlement, with efforts underway to determine the exact amount involved.

Mr. Koch disclosed that non-preferred unsecured creditors are owed more than $350,000 based on current information available. Additionally, former employees have begun lodging claims with the Fair Entitlements Guarantee scheme, with anticipated substantial outstanding entitlements given some employees’ long tenures with the company.

Interest in acquiring the bakery’s former premises, equipment, and assets has been expressed by several parties. Jason Malseed is facilitating viewings of the premises, and interested parties are conducting due diligence to submit offers.

However, the investigation has revealed that the company lacked insurance coverage for employee dishonesty, leaving creditors in a challenging position.

The liquidator is set to deliver the first report to creditors by March 1, 2024.

Latest news


Please enter your comment!
Please enter your name here