A family-owned healthcare business turning over $12 million a year is in receivership after the company started suffering major cashflow issues caused by interstate expansion.
The collapse of Endeavour Industries follows months of difficulties because of the installation of a new accounting system, which cost the assisted living and healthcare products supplier much more than expected.
Receiver Andrew Schwarz, partner at Taylor Woodings, says interstate expansion and installing a new accounting system put the 27-year-old business under significant cashflow strain.
“There were financial pressures on the business,” Schwarz told SmartCompany.
“Moving interstate had taken longer than expected, and the new accounting system…there were pressures there.”
Schwarz said the collapse was the result of internal issues rather than external, industry-wide pressures. “The issue is mainly cashflow,” he said.
The company owes $3 million to ANZ, but is turning over $12 million a year with 50 employees.
It mainly sells healthcare related products and home modifications, including mobility vehicles, movement assistance and bariatric equipment, including ramps, rails and seating. It also operates an installation service for all of these home modifications.
Schwarz says the business – which continues to trade – is now being put up for sale with hopes of selling the company as a going concern.
The business says it has considerable stock on hand, established relationships with suppliers and “sound relationships with key industry clients”.