The Queensland Government's Office of Fair Trading says a shopping bag company accused of ripping off SME advertisers has been placed in liquidation.
Poort Holdings, which traded as Paper Poort, has been at the centre of OFT investigations after it received 10 separate complaints from advertisers who said they had bought advertising space on Paper Poort bags but had not received the goods.
Reports in the Sunshine Coast Daily suggest that hundreds of customers have been duped. It has also been reported that the company's owner, Gary Poort, has left the state.
Peter Malone from Liquidation Direct says Paper Poort has taken $262,000 from customers who never received advertising services. The Australian Taxation Office is owed $20,000 and $9,500 is owed to St George Bank.
He says prospects for creditors are grim. There is no money in the company's bank accounts, although a trust that controls the company owns a block of land and a stake in an asbestos business. Malone says he will pursue these assets to discover if the liquidator has any claims to them.
A creditors meeting is scheduled at the Caloundra RSL on July 17. Creditors are invited to lodge claims here.
Queensland's Minister for Fair Trading, Peter Lawlor, said in a statement that it was important that consumers knew their rights when companies closed their doors.
"The Office of Fair Trading does not have the legislative power to assist in getting your money back if a company has become insolvent. However, it can investigate if the business has acted illegally. "
"It is illegal for a business to accept payment from a consumer for a product or service if the business has no intention to supply the goods or services."
Lawlor urged customers to contact their bank or payment provider to try and cancel any payments made to Poort.
