A Melbourne company collapsed due to $1.95 million to 140 creditors, with the company’s director “overwhelmed” by its bankruptcy, according to the trustee.
The company, Blinds City, described itself as Australia’s leading online store for custom and prefabricated blinds, shutters and other window accessories.
But his disappearance has affected 75 clients, who are collectively owed $142,000 after paying a deposit and not receiving their goods, the trustee told news.com.au.
Eddie Muscat of Mayfields Business Advisors was appointed liquidator on August 1.
The company’s failure has also affected 12 employees who are owed outstanding rights, Muscat said.
It is still gathering evidence to determine what went wrong with the company, he added.
“The director has been overwhelmed by the failure and has yet to provide the information required by law that was requested of him,” he told news.com.au.
“On August 19, we negotiated an agreement with the landlord, which will allow the liquidator to retrieve the books and records of the premises and deal with customers whose stock is on site.
“The liquidator will seek the assistance of ASIC (the Australian Securities and Investments Commission) if the director is unwilling or unable to help.”
Several customers have left comments on a review site claiming that they have shelled out thousands of dollars.
Others claimed they had waited weeks for the shutters to be installed only to find out later that the company’s phones had been disconnected.
Blinds City’s website and social media accounts have been removed.
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‘Massive increase’ in company collapse
It’s no secret that there has been a “massive increase” in Australian business collapses, but recent findings showed they have soared by 50 per cent since April.
The construction sector has been hit with scores of businesses closing this year due to a perfect storm of supply chain disruptions, skilled labor shortages, skyrocketing material and logistics costs, and extreme weather events.
Tech companies in particular are also struggling in Australia with investors spooked by dramatic drops in valuations, making it harder to find funding.
The latest tech outfit to be affected was a Melbourne-based esports startup called Order, which raised $5.3 million in funding last year but collapsed last week with liquidators looking to urgently sell the business.
Then there was an Australian tech company called Metigy, which left staff “shocked” by its sudden collapse earlier this month, after it planned to raise money at a $1bn valuation.
Last month, Australia’s first neobank founded in 2017, Volt Bank, went bankrupt and 140 employees lost their jobs, while 6,000 customers were told to urgently withdraw their funds.
From delivery start-ups to influential brands
Other failed businesses include grocery delivery service Send, which was liquidated at the end of May after the company spent $11 million over eight months to stay afloat.
A Victorian food delivery company that billed itself as a rival to UberEats and Deliveroo also collapsed in July when it became unprofitable, despite making more than $6 million worth of deliveries since it launched in 2017 and had 18,000 customers.
There was also a popular Australian e-commerce eyewear brand called Soda Shades, which collapsed due to $2.3 million due to difficult market conditions brought on by the Covid-19 pandemic.