The administrators for failed labour hire business Intermodal Staffing say the timing of the company’s breakdown was a factor in reaching an agreement to continue to allow trading.
Grey House Partners administrator Ben Verney told Shortlist his team worked over the Christmas and New Year period to contact and negotiate with interested parties, “with the view to continuing to trade the business via a licence agreement” while a sale of the business and its assets was completed.
“We considered this approach would maximise the chances of the company continuing in existence and result in the continuing in existence and result in the continuation of employment for the 124 employees.”
Due to the Christmas holiday period, however, the interested parties were unable to obtain the necessary legal and financial advice, he says.
Based on its preliminary investigations, Grey House Partners largely attributes the failure of the Intermodal Staffing to the collapse of its largest customer and debtor, Redstar Transport Operations Pty Ltd (which was also placed into liquidation on 20 December 2018), says Verney.
“Income from Redstar represented approximately 70% of the company’s income,” he says. “As at the date of our appointment, [Intermodal Staffing] employed nine permanent staff and 115 casual staff.”