- IGA in Western Sydney closes ahead of festive season
A suburban supermarket closed its doors just days before Christmas because it couldn’t replenish its shelves after struggling to pay a supplier $400,000.
The Werrington IGA, near Penrith in Sydney’s west, went into liquidation on Christmas Eve.
The supermarket, which also sold alcohol, had been closed since the weekend, when traditionally shoppers would have flocked to buy a festive turkey and the trimmings for a Christmas lunch.
Miller Tate Families Pty Ltd owned Supa IGA in Werrington County Shopping Village.
But this company, founded in 2020, is in the process of liquidation, leaving 20 employees in limbo just before Christmas.
Liquidator Steven Kugel, founding partner of The Insolvency Experts, said the company behind that suburban IGA had 50 creditors more than $500,000, but $400,000 of that amount was owed to a supplier.
Kevin Tate, the 60-year-old sole director and shareholder of Miller Tate Families Pty Ltd, had mortgaged his home to run the business and voluntarily appointed The Insolvency Experts to handle the liquidation after failing to secure the supplies needed to stock the shelves. .
“There’s no viable business because you can’t get the supply,” Mr Kugel told Daily Mail Australia.
A local supermarket has closed its doors a few days before Christmas because it was unable to replenish its shelves.
‘This company has a serious liquidity problem: it did not have money to open. Obviously it didn’t work.’
The IGA store on Dunheved Road was independently owned but had paid a licensing fee to parent company Metcash, which is listed on the Australian Stock Exchange.
In August last year, the NSW Independent Liquor and Gaming Authority gave Miller Tate Families Pty Ltd approval to sell alcohol at the IGA between 8am and 7pm Monday to Saturday and 10am to 6 pm on Sundays.
They had engaged Hatzis Cusack Lawyers to assist them with their liquor license application and were granted permission. sell alcohol within a small area of the existing supermarket, despite Werrington County having an “above average rate of alcohol-related disorderly conduct” and an “above average rate of malicious damage to property” .
But the liquor authority also noted Alcohol-related assaults were lower in the Penrith council area on average compared to the rest of the state.
The Werrington IGA, near Penrith in Sydney’s west, went into liquidation on Christmas Eve.
Miller Tate Families Pty Ltd, now registered in a Penrith residential apartment, was established in March 2020 when a Covid pandemic was declared in Australia.
Metcash told Daily Mail Australia that IGA has independently owned stores in New South Wales rather than franchises.
It is the second western Sydney business to go bankrupt in a matter of days.
The Orchard, considered “Western Sydney’s most memorable venue”, consists of a restaurant, cafe and garden bar in Penrith, about 60km from the city’s CBD.
The owners thanked the community for continued support when they announced the shocking closing in a social media post Wednesday.
“We are grateful for the continued support of the Penrith community and look forward to continuing to be a place where you can celebrate your special occasions for many years to come,” The Orchard said in a statement.
“It’s very much the same old thing. Please be assured that we will keep everyone informed as we move forward in this process.”
Administrator Graeme Beattie of insolvency firm Worrells described The Orchard as “one of western Sydney’s premier hospitality venues”.
“This decision comes after a period of challenging market conditions, including rising operating costs, changing consumer behavior and reduced discretionary spending, which have contributed to an unsustainable financial position,” it said.
Beattie said he was carrying out an “urgent financial analysis” of the company.