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A company which went bankrupt and owed millions of dollars has revealed desperate measures taken by its employees before the collapse.
Staff revealed desperate measures taken in the weeks leading up to a company’s collapse that owed millions.
C & S Plumbing Pty Ltd has been liquidated, reports news.com.au.
Simon Nelson from BPS Recovery and Reconstruction, based in Victorian company Victoria has served as liquidator of the Victorian company since 2015.
The liquidator reported to corporate regulator that there were more than 100 creditor and the debt accumulated was $12.2 Million. Shane Arnold was the only director of the firm and he made several decisions in the months leading up to its collapse. These include paying himself $101,000. News.com.au couldn’t reach Mr Arnold.
ASIC received documents stating that the Victorian plumbers had immediately fired all of their 70 employees. The unpaid wages totaled nearly $1.9million.
Ryan* worked at C & S Plumbing a few years and claims he owes about $10,000 of unpaid superannuation as well as the final week of his wages.
He said that you would have to be blind (to miss the demise of the company).
C & S Plumbing had been struggling for a year prior to its final collapse.
The fuel cards for company vehicles are not often used because of late payments.
Some times we were reimbursed for the money that we spent.
It was because the accounts had been put on hold that guys were forced to purchase materials. First, they said that people would be happy to lend a hand.
At the very end, though, they began to doubt whether their money would be reimbursed.
Ryan estimated that 10 to 15 resignations would have occurred in the 12 previous weeks.
C & S Plumbing, which had 100 employees at its height, was liquidated with 70 employees.
Johnathan claims to be a second former employee of the company who is due thousands in wages.
He said to news.com.au he worked on the jobsite without receiving any wages when his employer went bankrupt.
The payment we are due has not been made, nor have we received our superannuation or weekly pay.
Ryan, along with other employees of C & S Plumbing who learned about the accusations against their manager before the company went out of business, were enraged.
It was frustrating to lose my job on the spot and have to search for new jobs, while our boss is living his old life.
It’s possible that we haven’t worked in a while, but this doesn’t mean that we are unable to do these things.”
According to the liquidator’s statutory report filed with ASIC (and made public), Shane Arnold was the only director of C & S Plumbing. He allegedly increased his salaries and sold C & S Plumbing’s assets to a company owned by a relative, using an existing plumbing firm to perform the work.
In the report it is stated that “possible recoveries” can be made by creditors to Mr Arnold, if he was personally pursued with accusations of non-commercial transactions.
According to the report Mr Arnold “began getting significantly higher wages” as of late November, until the liquidator’s appointment four months later.
In order to cash out the outstanding RDO and annual leave balances, they had been refunded.
According to the report, a review of Mr Arnold’s payslips shows that he earned approximately $101,000 over that period.
The payments are recoverable as voidable transaction in the liquidation.
C & S’s employees also put in 261 additional hours at a firm called Arnold Land Development. No wrongdoing was alleged against the director of this company, who is also a member of Mr Arnold’s own family.
C & S Plumbing has never been paid for the total $456.665 of hours and materials that were used at the subdivision.
At the time of filing the report in May, there was no response received by the office of the liquidator to their demand for payment.
Liquidator Arnold Land Development also considered the sale of Arnold Land Development’s plant and equipment as a “voidable deal”, meaning that it sold it for less money than should have been the case, given the circumstances. It can be taken.
Arnold’s intention to declare bankrupt is revealed in a document filed by the company regulator.
While C & S Plumbing’s collapse went largely unnoticed, News.com.au reported in early this year two major Victorian plumbing companies had entered liquidation. In February, CDC Plumbing and Drainage ceased operations owing creditors $7,000,000, and Richstone Group went into liquidation in June with a debt total of $22,000,000.
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