Staff, suppliers owed $1.3m as 4WD company liquidates
A BRISBANE wheel manufacturer has blamed the decline of the U.S dollar for his company's collapse that has resulted in almost 60 creditors being owed $1.3 million.
Allied Wheels operated an off-road wheel manufacturing and wholesaler business for four-wheel-drive vehicles and trucks.
The company was put into liquidation on October 14 with debts to 56 unsecured creditors totalling $1.28 million.
Payment of $118,522 is also outstanding to 10 of the company's employees.
Six creditors are owed more than $75,000.
Taiwanese company Li Tai Alloy Co is one of the largest unrelated creditors, owed $256,429.
Index Investment Properties is owed $260,654 and the company's director, Gary Tonkin, is owed $275,664.
In his report to liquidator Jarvis Archer of Revive Financial Mr Tonkin cited the decline of the United States dollar, internet sales and a shrinking market for the company's inability to pay rent or bills.
"It is understood that the company's cash flow position was deteriorating some time prior to my appointment due to the reduction of work caused by a downturn in the industry," Mr Archer said.
Compounding on the difficult times, Mr Tonkin experienced significant health issues which meant he was "unable to run and actively manage the business" for some time, Mr Archer noted.
The Australian Tax Office is also listed as both a priority and unsecured creditor, with $26,142 and $106,531 owing to the government entity.
The tax office has already claimed $31,775 owed.
Mr Tonkin could not be reached for comment and Mr Archer said his probe was ongoing.
"My investigations are at a preliminary stage, however I will continue to investigate the disclosured made by the director... with a view to securing and realising available assets, where commercially viable to do so," he said.
Liquidators or administrators were appointed to 113 Queensland businesses in September.