Staff made redundant after Mercedes Waratah’s purchase of failed On Demand have been left in the dark, allegedly with more than $500,000 worth of unpaid super hanging in the balance.
The deal, which saw the Aboughattas-owned group take control of Michael Wu’s collapsed printer, also resulted in the redundancy of several long term staff members who are owed super totalling $526,000.
ProPrint spoke to a former On Demand employee made redundant as part of Mercedes Waratah’s acquisition in September, who says creditors have been informed of the debt owed however are still playing the waiting game.
The ex-employee told ProPrint a report was released from insolvency agency Rodgers Reidy, stating ‘it appears that the director and former directors may have breached their duty to act with care and diligence’ in relation to unpaid superannuation.
The report also allegedly outlines further investigation into unfair preference payments to the amount of $844,717, and a related entity payment of $561,568. ‘So the liquidator may have a claim for insolvent trading from at least 1 July 2015’, states a former employee.
It is believed On Demand had no more than $120,000 to its name at the time of administration.
Liquidator Matthew Gollant from Rodgers Reidy told ProPrint employee super claims are a priority, however says resolution is not an overnight process.
“Collecting unpaid super for On Demand emoloyees is certainly a priority, but creditors should understand that it is never an overnight process. These things often take six to twelve months,” says Gollant.
“Selling the plant and equipment to Mercedes during the administration was just one part of the overall realisation. At this stage it is a long-haul scenario.”
Soon after acquiring their former partner’s failed outfit, the Aboughattas brothers quickly transformed On Demand into its new division Data Direct Digital to synchronise with its recently purchased mail business Data Direct Mail.
On Demand was Michael Wu’s final link to the print industry after his empire crumbled, triggered by his exclusion from the Docklands Ability Group merger several months ago.
Gollant says he has been in contact with Wu since On Demand’s collapse and praises the former print high-flyer for working peacefully with liquidators and providing all relevant business information.
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