Creditors of Naracoorte’s closed Morris Bakery are owed more than $350,000, and investigations confirm the company was not insured for employee dishonesty.
New information ascertained by this newspaper [Naracoorte Community News] on the business’s liquidation process confirms that the company’s director has completed his report on “company activities and property,” which has been lodged with the Australian Securities and Investments Commission.
The town’s popular bakery shut its doors on February 5 after losing about $300,000 in alleged theft by a former employee.
Liquidator Tarquin Koch confirmed SAPOL investigations into the alleged embezzlement are ongoing, and the company’s director is working with police to quantify the amount claimed.
“My investigations are ongoing, but based on the presently available information, non-preferred unsecured creditors are owed more than $350,000,” principal Mr Koch said.
He also confirmed that the former employees have commenced lodging claims with the government scheme known as the Fair Entitlements Guarantee.
“At this stage, it is too early to quantify the total amount of employee claims, however, given the length of time some of the employees have been employed by the company, the outstanding entitlements will be substantial.”
Mr Koch said numerous interested parties have shown interest in the company’s former business premises, plant and equipment.
“Jason Malseed has shown numerous interested parties through the company’s former business premises, and a number of these parties are conducting their due diligence with a view to submitting offers on the company’s plant and equipment and the company’s former business premises.
“Anyone interested in acquiring the company’s plant and equipment and/or the company’s former business premises should contact Jason Malseed directly.
“SAPOL is continuing their investigations regarding the alleged embezzlement, and the company’s director is assisting SAPOL to quantify the amount claimed.
“Prima facie, a former employee has misused a company credit card to incur personal expenses without the knowledge or consent of the director.
“Disappointingly, my investigations have confirmed that the company was not insured for employee dishonesty.”
The liquidator’s first report to creditors is due no later than March 1, 2024.
This article appeared in the Naracoorte Community News.
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