Quick Snapshot
- Industry: Retail F&B (Fast Food)
- Location: Victoria
- Total Debt: ~$400K (ATO)
- Outcome: ATO debt cleared, winding-up action halted, business preserved
The Situation
A Victorian fast-food operator approached de Jonge Read® after increasing financial pressure across the business.
Rising costs, tightening margins, and ongoing ATO pressure led to the ATO commencing winding-up proceedings, placing the company at immediate risk of liquidation.
The Problem
At the time of engagement:
- The business had accumulated approximately $400,000 in ATO debt
- Winding-up proceedings had already commenced
- Control over the liquidation process was at risk of being transferred to a Court-appointed liquidator
- Interrelated party matters added further complexity requiring a compliant approach
The directors had limited time to act before the process progressed further.
The Solution: de Jonge Read®’s Expertise
We implemented a Pre-Pack restructure prior to the Court appointing a liquidator.
This involved:
- Transferring the viable parts of the business, including brand, operations, and staff, into a new structure
- Preserving ongoing trade while isolating legacy liabilities
- Ensuring the restructure was completed in a compliant and transparent manner
Following implementation, we assisted the directors in managing engagement with the Court-appointed liquidator, who reviewed the transaction.
The Outcome
The restructure was completed before the winding-up process reached its final stage, allowing the business to continue trading.
Key results:
- $400,000 in ATO debt eliminated
- Winding-up action effectively halted
- Business operations preserved in a new structure
- Jobs and supplier relationships maintained
- Restructure reviewed and accepted as compliant
The business continued operating profitably under its new structure.
Key Lesson
Even where winding-up proceedings have commenced, timing remains critical.
Acting before a Court-appointed liquidator takes control can preserve business value, maintain operations, and allow legacy liabilities to be addressed in a structured way.
If you are facing ATO action or winding-up proceedings, early intervention can materially change the outcome. Speak with the de Jonge Read® team to understand what options may still be available.
This case highlights how retail food businesses in Victoria facing ATO debt and winding-up action can use a Pre-Pack restructure to preserve operations and eliminate legacy liabilities.
Should you have clients or associates that you know are struggling with financial issues or need assistance in reviewing their business affairs in preparation for what’s around the corner, our team of Strategists would be pleased to discuss options that are available on how to best design and implement insolvency strategies. Contact us now on p. 1300 765 080 | ua.mo1777384283c.arj1777384283d@ofn1777384283i1777384283
Did you know?
Phoenixing is another name of business restructure. Read more about business restructures and when this can be an option for you.
