Barretts Bakery, a well-known bakery chain that has been operating in Perth for over 25 years, is in danger of being liquidated after owing $2 million to the Australian Taxation Office (ATO). The chain, which has seven stores across the city, was placed under administration on July 27, according to a notice published by ASIC1.
The administrator, Mervyn Kitay from Worrells, is trying to find a solution to save the business, which sells fresh bread, pastries and cakes. He held an initial meeting with creditors on Tuesday to discuss the possibility of a restructure or a sale. However, if no viable option is found, the chain could be shut down.
Kitay said that the $2 million tax debt was a legacy debt, meaning that it was higher than expected due to the impact of the COVID pandemic on the business’ retail and wholesale operations. He also said that the ATO had become more aggressive in collecting unpaid taxes from non-compliant companies, and that the company director could be personally liable for the debt if it was not paid2.
Barretts Bakery started as a small operation in 1998 and grew to become a “Perth staple”, with branches in Claremont Quarter, East Victoria Park, Mount Hawthorn, Karrinyup, Joondalup and Perth CBD. The chain has won over customers with its environmentally friendly products and local suppliers. However, its future is now uncertain as it faces the risk of insolvency.
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