A sydney aluminium business sacked 53 workers as it collapsed with $9.7m in debt and the company’s business tactics come under investigation.
Leda Aluminium, located in Western Sydney, fell into liquidation last week after failing to find a buyer or secure a rescue deal.
The company manufactures and installs aluminium windows, doors and more but has struggled with rising price pressures and competing with low-cost overseas imports.
All 53 employees were sacked when administrators were appointed in February, according to The Daily Telegraph.
It comes as the company went under with about $2m in unpaid remuneration for its staff.
Leda Aluminium went under owing $7.6m to unsecured creditors while liquidators claim the company used more than $245,000 of stolen super from employees.
The Australian Taxation Office is owed almost $1.7m while the Workers Compensation Nominal Insurer (icare) claimed it is owed $172,917.
Leda Aluminium’s liquidator Ernie Chou from EKC Advisory said the company used unpaid debts to staff, creditors and the tax office as “working capital”.
“The company failed to remit PAYGW, GST and superannuation contributions as they fell due. Statutory debts were effectively used as a source of working capital,”…