A Queensland-based window and door manufacturer that was previously featured on the BRW Fast Starters list has collapsed into voluntary administration.
Jason Bettles and Raj Khatri of Worrells Solvency and Forensic Accountants were appointed administrators of Total Concept Glass on August 21.
The first meeting of creditors was held in Robina, Queensland on September 1, followed by a second creditors’ meeting on September 24.
SmartCompany understands a deed of company arrangement was accepted by creditors on September 25.
Total Concept Glass, which was previously known as Total Refurbishment and Total Concept Group, was incorporated in 2005. The company specialised in renovations, glass fabrication and window and door installations.
The company featured on the BRW Fast Starters list in 2010 with annual turnover in 2008-09 of $9.65 million.
But documents seen by SmartCompany indicate the company was sold to a related entity, Total Lifestyle Windows, in June 2014, with a sale price of just $100,000. As Total Lifestyle Windows agreed to take on outstanding entitlements to former employees of Total Concept Glass, which totalled approximately $107,000, no cash actually changed hands.
Total Concept Glass is not taking on new customers but SmartCompany understands Total Lifestyle Windows, which is not in administration, will complete six outstanding rectification jobs, worth close to $200,000 as part of the deed of company arrangement.
The collapse of the company has been attributed to the non-collection of debtors and adverse legal actions.
The administrators received more than 50 claims of debts from creditors, totalling approximately $7.1 million. Among the major creditors are other building companies and the Australian Tax Office, which is owed just under $700,000, while employee claims totalled just over $46,000.
The Gold Coast company was reportedly one of numerous building companies caught in the fallout involving the construction of the Gold Coast Titan’s doomed Centre for Excellence.
The $10.6 million centre was built in 2009 but news reports in 2012 suggested several tradespeople were left out of pocket by the work on the centre. According to The Daily Telegraph, Total Concepts was owed approximately $600,000 for glasswork it undertook for the centre.