Jobs go as million dollar tax bill closes 14 salons
LATEST: A DEBT in excess of $1.7 million to the Australian Taxation Office led to Supercuts Hairdressing Salons being placed in voluntary administration by its shareholders.
Staff at the 13 Queensland stores and one in Canberra, were told in the early hours of May 7 their stores would close by the appointment of liquidators and their jobs were terminated.
Supercuts had three salons in Ipswich at Booval Fair, Riverlink and Redbank Plaza, with each business having at least four employees.
Three Supercuts salons which operate in South Australia are not affected as they are owned by unrelated parties and are not affected by the liquidation.
Mark Pearce and Michael Dullaway from Pearce and Heers were appointed as liquidators.
Mr Pearce said the company was placed into voluntary administration due to outstanding debts.
"In November 2015 the company was placed in voluntary administration, predominantly on account of significant debts owed for employees superannuation and tax," he said.
"The company entered into a Deed of Company Arrangement to resolve its debts and continue trading although the number of salons were reduced. "
Subsequent to the Deed of Company Arrangement the company has incurred losses and run up a further debt to the ATO in excess of $1.7 million.
"Over the past six months the directors sought to sell the company's business and a sale contract was entered into but did not proceed. Following the recent termination of that sale contract the decision was made to place the company in liquidation."
The company had 76 employees in total, with Mr Pearce saying "liquidators will assist employees with applications for payment of entitlements owed to them through the Commonwealth government's Fair Entitlements Guarantee Scheme".
Mr Pearce also said some salons may resume trading and liquidators are speaking with interested parties.
UPDATE: Liquidators have been appointed to the 32-year-old hairdressing chain Supercuts ending a battle to save the business.
Mark Pearce, of Brisbane insolvency firm Pearce & Heers, was on Tuesday appointed liquidator of Pontefract Pty Ltd, trading as Supercuts Hairdressing.
Supercuts operated 14 stores in Queensland including Cairns, Mackay, Yeppoon, Townsville, Toowoomba, Capalaba and Springwood. It also had three stores in South Australia.
Supercuts, established in 1987, initially struck trouble in 2015 when administrators were appointed to the business, which owed an estimated $2.3 million to creditors.
The company and directors entered a deed of company arrangement with the administrators in December 2015 in an attempt to salvage the business.
Workers at Supercuts Hairdressing Salons in Booval Fair, Riverlink and Redbank Plaza and Toowoomba's Clifford Gardens Shopping Centre were sent home yesterday morning.
The Booval Fair store was closed but no sign was left on the door.
Comment was sought from Supercuts Hairdressing SA and Qld Administration but neither head offices or any of its stores returned calls on Tuesday afternoon.
EARLIER: Hairdressers from three salons across Ipswich are believed to be out of work after the company they worked for closed its doors.
The QT understands workers at Supercuts Hairdressing Salons in Booval Fair, Riverlink and Redbank Plaza and Toowoomba's Clifford Gardens Shopping Centre were sent home in shock this morning.
The QT visited the Booval Fair store and can confirm the business was closed. No sign was left on the door.
It is not yet known how many staff have lost their jobs.
Supercuts Hairdressing have 14 stores in Queensland including Cairns, Mackay, Yeppoon, Townsville, Toowoomba, Capalaba, Springwood, Victoria Point, Oxenford, Runaway Bay, Southport, Mermaid Waters and Runaway Bay.
There are also three stores in South Australia.
Sharon Gambrill, the centre manager of the Runaway Bay Centre, said she was informed today that tenant Supercuts had gone into liquidation.
"We understand the departure of Supercuts Hairdressing from our centre may cause some disappointment to our customers," she said.
"Responding to a dynamic retail environment is part of our business as usual - we see this as an opportunity for our team to work with other retailers to fill this space. We're always looking at our retail mix to ensure we're meeting the changing demands of our customers and, as a result, we will be speaking with other suitable retailers."
The QT has sought comment from Supercuts Hairdressing SA and Qld Administration.
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