Action by the Australian Tax Office has put demolition business Bastemeyer Group into administration.
Bastemeyers is a Queensland-based business which has been established for over 30 years.
The business provides demolition, bulk earthworks and sea-wall construction services with a client list which includes local government authorities and large multinational organisations.
The main Bastemeyers business is still trading but administrators Jason Bettles and Raj Khatri of Worrells Solvency & Forensic Accountants were appointed to related company Bastemeyer Group last week.
John Bastemeyer, the owner and director of Bastemeyers is also a director of Bastemeyers Group.
Bettles told SmartCompany the Bastemeyers group owes creditors “a lot of money”.
Around $2 million is owing, with the ATO owed $1.4 million as the largest creditor.
Bettles says the administration has been brought about following action by the ATO.
“The ATO seems to be taking action against the director and issued a directors penalty notice,” he says.
Bettles says the majority of the remaining creditors are trade creditors.
Bastemeyer Group ceased trading on 24 July 2015 before the administrators were appointed.
Bettles says more details will come to light as the administrators investigate further.
“It’s only fairly early on in our appointment,” he says.
A first meeting of creditors will be held on 17 August.
SmartCompany contacted John Bastemeyer but did not get a response prior to publication.