Flash Harry's goes into liquidation
FIFTY staff across five locations, including Bargara and Bundaberg are out of a job following the liquidation of variety chain stores Flash Harry's.
Closing its door's yesterday at Bargara Central and Sugarland Shoppingtown as well as stores at Hervey Bay, Noosa and Gympie, staff were given just hours notice before the closed signs went up.
Liquidators Worrells Solvency and Forensic Accountants partner Paul Nogueira said the Flash Harry's went into liquidation on Tuesday with staff now required to submit applications to through the governments Fair Entitlement Guarantee Scheme in order to secure payment entitlements.
"We've met with all of them (staff) and they're in the process of submitting those forms through the proper department to get paid," he said.
"It pretty much pays out everything except superannuation but I understand there's not a lot of superannuation actually due in respect to this company."
Mr Nogueira the process now would be to access the value of the stock and then canvas the market to see if there was anyone interested in picking up either the businesses or stock or whether it was abandoned.
"We're waiting on advice from our valuers about the best approach," he said.
Mr Nogueira said creditors were owed about $1.2 million in addition to what was owed to the banks and employees, with the final figure dependant on staff redundancies.
He said the directors had exhausted all options to keep the business going but the closures were largely due to a significant downturn in trading and high rentals.
"There's been spat of other liquations of other variety stores throughout the industry. That applied a lot of pressure to suppliers in the market so they we're prepared to provide a lot more credit so that put some serious cash flow problems on the business as well," he said.
Mr Nogueira said stores such as Flash Harry's, Crazy Clarks and King Kong were reliant on discretionary spending and the closures were a sign that individuals were tightening their own belts as the downturn in the mining sector was putting on wages.