Massive Australian company collapses owing $80million

The debt of a failed group of manufacturing companies has risen to nearly $80 million in what is expected to be one of the biggest corporate collapses of the year.

GDK Group, which ran a number of businesses in the furniture and building materials industry based in Sydney’s west, collapsed last year.

Liquidators have since uncovered the enormous extent of the group’s debts.

Over the past year, 12 companies under the GDK umbrella have folded with liquidators saying this week that four of those companies owe $48.7 million to 159 creditors, news.com.au reports.

This brings the total owed by the group to $78 million when combined with another company linked to the group which was already revealed to have owed $29.8 million.

Just before Christmas, one of the group’s companies, Weatherill Park-based Joinery Manufacturing Solutions Pty Ltd, told 30 staff they were being made redundant.

It is understood that some of the 12 companies went into voluntary administration and others were forced into liquidation by the tax office.

More to follow.