20 jobs gone after electrical business goes bust
UP TO 20 people have lost their jobs after a Northern Rivers electrical firm went into liquidation.
It is understood JDZ Electrical, which has offices in Lismore and Casino, dismissed its workforce on Wednesday.
The same day, the Australian Security Investments Commission issued a notice that the privately held company had been placed into external administration.
Alan Lee Walker, a partner at independent insolvency firm Cor Cordis, said it was "a very sad situation" for JDZ Electrical Pty Ltd.
Mr Walker confirmed he and Cor Cordis colleague Andre Leon Lakomy were appointed to oversee the administration of the company on Wednesday.
"They had a large outstanding tax bill and were struggling with a certain number of projects working on very skinny margins," he said.
"Unfortunately we had to make all the employees redundant as the company was not able to continue with the contracts and pay employees their wages."
Mr Walker said the company found itself in financial strife when the Australian Tax Office demanded they pay an outstanding tax bill.
They had no choice but to appoint administrators.
"It is a shame because they employed people in the Lismore area," he said.
"(But) the company was not viable."
Mr Walker said Cor Cordis would ensure the company's outstanding contracts would be properly concluded.
"We will finish of those contracts," he said.
"It is still very early days, as we are 48 hours into the job and are still collecting information and financial records from the company.
"There is a meeting on the 24th of April at the Ramada in Ballina for creditors and stakeholders."
JDZ Electrical was founded by director Justin Zaiko in 2013.
He initially set up as sole trader, and by December 2015 the business had six employees and numerous sub-contractors, according to the business' website.
"The decision was made in January 2016 to create a new company called JDZ Electrical Pty Ltd," the website states.
"Simon Zaiko came on board as a director in January 2016 and brought with him a wealth of financial management and project delivery experience gained by working for mining and resource companies internationally."
The business has worked on many high-profile projects in the region and is understood to be involved in some building projects for Richmond Valley Council, including the Casino Saleyards.
Despite the business going into administration, a council spokeswoman said they were confident those projects would still be completed on time.
"JDZ Electrical is a sub-contractor for AGS Commercial, one of around 20 companies working on our projects," she said.
"We are confident AGS will deliver on its contract with RVC."
AGS Commercial director Simon Booth confirmed his company had no business affiliation with the electrical firm and would meet all its contracted deadlines and budgets.
"JDZ are a sub-contractor to us and has no connection with AGS Commercial," he said.
Projects JDZ Electrical have worked on include:
- Commercial building at 214 Molesworth St, Lismore
- Lismore Regional Art Gallery
- AGS Commercial: Bridgestone Tyre Centre Located in Hume, Canberra
- Hutchinson Builders: Lismore Toyota
The Mr Zaiko and JDZ Electrical Pty Ltd has been contacted for comment.