An Australian company that made seats for major sports stadiums around the world has collapsed and still owes tens of millions of dollars.
Camatic Pty Ltd, which operates from Australia with facilities in the US and Malaysia, went into voluntary administration in April.
The 60-year-old Australian company owed $29.4 million when Jason Stone and Glenn Franklin of insolvency firm PFK were appointed to oversee it.
Approximately 77 employees and “numerous” employees were immediately laid off or laid off and 123 projects were left in limbo.
Camatic, trading as Camatic Seating, manufactured and installed seating in stadiums, stadiums, cinemas, theatres, educational institutions and transit areas around the world.
Melbourne-based Camatic Pty Ltd went into administration in April with debt of $29.4 million
Camatic had been specializing in seating for over 60 years and operated in Australia, Malaysia and the United States.
Administrators requested that employees be laid off without pay from April 10 to May 3, according to an internal letter obtained by news.com.au.
“The reason for the withdrawal is that most of the company’s operations have been suspended for the moment, which has caused a work stoppage in which certain employees [including yourself] can no longer be used usefully,” the letter said.
Franklin recommended that the company be placed into liquidation and a meeting of creditors has been scheduled for May 10.
If Camatic goes into liquidation, all employees will permanently lose their jobs.
The unpaid wages represented $3.6 million of what is owed to employees, including their salary, superannuation, annual leave, long service leave and severance pay.
Outstanding amounts owed to unsecured creditors amounted to $14.9 million, according to the administrators’ report.
Camatic’s largest creditor is HSBC, which is owed $11.2 million for loans and credit cards, a mortgage and a bank overdraft.
The ATO lodged a notice of debt for $250,000 and the Victorian State Revenue Office notified the administrators that they were owed $331,000.
Claims have also been filed against the company’s manufacturing plant ranging from $748 to $114,000 for steel pallets, plastic beads, a printer and fiberboard.
Franklin blamed Covid-19 lockdowns for Camatic’s failure, especially as an international business.
What also didn’t help was the fact that Camatic opened a new manufacturing plant in Malaysia during the Covid period.
Due to the closures, management was unable to travel and supervise the facility, which contributed to the company’s decline, Franklin added.
Administrators said Camatic’s owners had recently attempted to sell the company and had received two offers, but that negotiations were ongoing.
The administrators expect the company to be placed into liquidation and have called a meeting of creditors for May 10.
Camatic manufactured and installed seating in stadiums, arenas, cinemas, theaters, educational institutions and transit areas worldwide.
Camatic operates from Melbourne, where its US branch, Camatic US, also operates.
The manufacturing plant built in Malaysia served regions in the US where the company boasted of having served. “some of the largest stadiums and arenas”, and in Australia, where they provided seating for the Australian Open tennis tournament.
In a recent Instagram post, the company celebrated supplying Australian Open seating for 20 years at Rod Laver Arena, Margaret Court Arena and John Cain Arena.
Camatic also supplied more than 5,000 Quantum seats for the Kia Arena, “all of which were manufactured and assembled less than half an hour’s drive from the venue at our Melbourne facility,” the company said in a social media post.
It had also supplied more than 42,000 Axiom seats at the Sydney Football Stadium, which opens in mid-2022.
In the United States, Camatic worked with Mercedes-Benz Stadium, SoFi Stadium and Climate Pledge Arena.
Credit reporting agency CreditorWatch reported that the number of external administrators appointed to Australian companies is reaching an all-time high.
The rate is 22.1 percent higher than this time last year.
Last month, national roofing manufacturer Lutum collapsed over $20 million and this month Victoria-based Highline Caravans collapsed over $1 million.
