The trustee appointed to oversee the bankrupt estate of Doughnut Time founder Damian Griffiths says the Australian Taxation Office (ATO) is owed $1 million and other creditors have contributed to loans in the vicinity of $2 million.
Raj Khatri of Worrells Insolvency confirmed this afternoon he has been appointed by debtors petition to oversee Griffiths’ bankrupt estate.
Griffiths is the entrepreneur behind Doughnut Time and a number of businesses in Fortitude Valley in Queensland, including Les Bubbles, Alfred and Constance, and Limes Hotel.
Doughnut Time entered liquidation last week and reportedly owes employees an estimated $200,000 in unpaid wages, according to the ABC. Employees were left in the dark up until the last minute when it came to the future of the business.
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A statement from Khatri says the insolvency notices of the above businesses led to Griffiths’ personal insolvency.
Griffiths’ statement of affairs lodged with the Australian Financial Security Authority (AFSA) says his bankruptcy was caused by “economic conditions affecting industry, including competition, credit restrictions, fall in prices or increase in costs”.
The statement of affairs also outlines that the Australian Taxation Office is the principal creditor, owed $1 million “arising from a Director Penalty Notice”. The director penalty notice was issued for unpaid PAYG and superannuation debts at venues he founded, according to a statement from Worrells.
Family members who provided loans to Griffiths are listed among the creditors to his estate, with a statement from Worrells indicating these relate to loans “in the vicinity of $2 million”. One of the parties involved is secured by a third mortgage over two properties in Paris.
Worrells said Griffiths has also declared approximately $140,00 in credit card debt, and a recent court case found a family member’s company is owed $550,000 for a payment relating to a partnership venture over the Limes Hotel.
Worrells is currently seeking proof of debt from potential creditors through its website. SmartCompany was unable to contact Griffiths this afternoon.