Spillane Fabrications, a stainless steel manufacturing company based in Brisbane, has gone into administration in another blow to the beleaguered manufacturing sector.
Terry Rose and Anne Meagher of SV Partners were appointed as administrators this week.
Rose told SmartCompany Spillane Fabrications owes the Australian Tax Office $100,000 and trade creditors around $30,000.
“We are continuing to trade the business with a view of trying to put a deed of company arrangement in place,” he says.
Rose says the factor which tipped Spillane Fabrications’ over the edge was cash flow problems.
“That’s why we think a deed might be able to be worked through and also the ATO was applying some pressure to them,” he says.
“The indicators are that hopefully we will be able to trade out.”
The manufacturing sector has been hit hard over recent years with rising labour costs and increased global competition.
However, Rose says he is still investigating Spillane Fabrications’ collapse.
“There is always uncertainty in the industry but it is probably just too early at this stage to say,” he says.
A first meeting of creditors will be held on January 25.