Camatic Seating: Decades-old Aussie company collapses putting all staff out of ... trends now
An Aussie company that made seats for major sporting stadiums around the world has collapsed while still owing tens of millions of dollars.
Camatic Pty Ltd which operates out of Australia with sites in the US and Malaysia entered voluntary administration in April.
The 60-year-old Australian company owed $29.4m by the time Jason Stone and Glenn Franklin from insolvency firm PFK were appointed to oversee it.
Approximately 77 employees and 'numerous' staff were immediately stood down or laid off and 123 projects were left in limbo.
Camatic, which traded as Camatic Seating, made and installed seats in stadiums, arenas, cinemas, theatres, educational institutions and transit areas globally.
Melbourne-based Camatic Pty Ltd entered administration in April owing $29.4m
Camatic had been specialising in seats for more than 60 years and had been operating in Australia, Malaysia and the US
Administrators requested employees be stood down without pay from 10 April to 3 May, according to an internal letter obtained by news.com.au.
'The reason for the stand down is that the majority of the company's operations have been put on hold for the time being resulting in stoppage of work where certain employees [including yourself] can no longer be usefully employed,' the letter read.
Mr Franklin recommended the company be placed into liquidation and a meeting for creditors has been scheduled for May 10.
If Camatic enters liquidation all employees will permanently lose their jobs.
Unpaid wages accounted for $3.6m of what is owed to employees which includes their pay, superannuation, annual leave, long service leave and redundancy pay.
Outstanding amounts owed to unsecured creditors accounted for $14.9m, the administrators report stated.
Camatic's biggest creditor is HSBC which
