Former leading Perth insolvency accountant Oren Zohar is in the messy end of a $2 million-plus clean-up after the sale of swish home renovator Joyce Kitchens. Get more details about joyce kitchens perth
Mr Zohar, a WA pioneer of KordaMentha two decades ago, has put the former Joyce factory, retail and renovation companies into liquidation following selling the retail operations of your once-sprawling Joyce Kitchens group in February.
Mr Zohar has been attempting to finalise contracts that pre-dated the sale with the Osborne Park-based Joyce Kitchens operations to senior designer Dawn Metcalfe’s private company DSM Capital Pty Ltd.
He battled to restructure Joyce factory, renovations and retail operations by way of the COVID-19 upheaval soon after buying the group out of administration in 2019.
Mr Zohar mentioned he had been operating and delivering funding to ensure that renovations for customers who signed up prior to the February sale have been completed. “My intention is always to ensure that any remaining employee superannuation is paid in complete,” he said.
He believed the diverse group was within a powerful position in July final year following JobKeeper ended and the retail arm enjoyed bumper sales.
But the former liquidator did not anticipate labour shortages and materials provide disruptions in the second half of 2021 producing its so difficult for the manufacturing and renovation teams to complete jobs. “We struggled to deliver on orders,” Mr Zohar said.
“The renovation and manufacturing enterprises suffered from lengthy COVID.”
Northbridge liquidator John Carrello has taken control with the former Joyce Kitchens (Retail), the former Joyce Renovations installation company and JK Factory, which has operated a factory in O’Connor.
Filings with all the Australian Securities and Investments Commission show around $1.7m-plus of external claims against JK Factory.
JK Factory owed $1.05m to the tax office and around $500,000 owed to trade creditors in mid-May. It had also accrued $137,084 in unpaid employee superannuation contributions by mid-May.
The former Joyce Renovations is shown on ASIC filings as facing around $693,645 of creditor claims. The former retail company has listed $343,417 of creditor claims, such as $185,324 allegedly owed for the tax workplace.
Mr Zohar mentioned numerous with the trade debts had been paid because the ASIC filings produced in May immediately after he sought Mr Carrello’s help.
He mentioned the opening of the WA borders in April along with the worsening labour shortages had created it particularly tough to meet his commitment to finish each of the work.
With most jobs now completed, he hoped all client contracts could be completed in coming weeks.
“It is coming at a great cost both financially and emotionally,” he mentioned. “I have been on the other side as an insolvency practitioner along with the last issue I wanted to do was walk away.”
Mr Zohar believed the circumstances with COVID were unprecedented and made it too hard for the renovations and manufacturing arms to survive.
“Thankfully the retail business is going well and is in fantastic hands,” he stated.
