Barretts Bakery chain in Perth collapses after more than 25 years in business owing $2m to ATO
- Popular bakery collapses after 25 years
- Barretts Bakery owes $2 million to the ATO
A popular bakery chain that has been in business for over 25 years collapsed due to $2 million.
Barretts Bakery, which first opened in Perth in 1998, has become known throughout the city for its fresh bread, muffins, cakes and sweets.
However, a notice posted on the ASIC website revealed that the administrators took control of the business on July 27.
The future of the once popular bakery now rests in the hands of Mervyn Kitay, a director of the insolvency firm Worrells.
The managers are working on a bailout plan to restructure the business with a kick-off meeting on Tuesday.
If this fails, the bakery chain is likely to be sold or liquidated.
Barretts Bakery, which first opened in Perth in 1998, has become known throughout the city for its fresh bread, muffins, cakes and sweets.
A notice posted on ASIC’s website revealed that administrators took control of the once-popular bakery chain on July 27.
Kitay said the problems first arose during the covid pandemic and that the $2 million tax bill owed by the company is a legacy debt. 7News reports.
Legacy debt refers to debt that is above what could have been expected in relation to the behavior of GDP and inflation.
Kitay said the government’s revenue collection agency has stepped up efforts to get defaulting companies to pay their debts.
The new push will also see senior management risk ‘penalty notices to director’ and become personally liable for tax and extraordinary liabilities.
The bakery had as many as eight stores across the city, including in the Perth CBD, Claremont Quarter, Victoria Park and Mount Hawthorn.
