Unpaid Doughnut Time workers will likely have to call on government #Leadership @MondoPlayer [Video]

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Loading“If there’s no dividend, the unsecured creditors have to write those moneys off,” he said.“With employees, there is a government scheme called FEG, the fair entitlement guarantee.“If the claim is valid it pays three months of unpaid wages and any annual leave...

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“If there’s no dividend, the unsecured creditors have to write those moneys off,” he said.

“With employees, there is a government scheme called FEG, the fair entitlement guarantee.

“If the claim is valid it pays three months of unpaid wages and any annual leave and long service entitlements that are verified.

“It doesn’t pay any superannuation.”

The FEG was most recently drawn on when mining magnate Clive Palmer’s Queensland Nickel refinery collapsed, leaving 800 workers owed almost $70 million.

At this early stage it is unclear how many of Doughnut Time’s dozens of unpaid workers are associated with the businesses in question.

“The only way that they get their full entitlements and super (from the company) is if there’s a large recovery but that doesn’t appear likely at this stage,” Mr Caspaney said.

Neither founder and former owner Damian Griffiths nor new owner Dan Strachotta responded to questions about the liquidation.

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Mr Griffiths previously told Fairfax Media about 60 workers were owed money across Doughnut Time stores and the Fair Work Ombudsman confirmed it was looking into the matter.

The Australian Securities and Investments Commission’s Insolvency Notices service lists nine Doughnut Time-related companies within the 45-year-old’s former empire as being in liquidation but several more remain registered.

Among those in liquidation is Doughnut Time Mermaid Beach Pty Ltd, which appears to be linked to the Mermaid Beach store Mr Griffiths said would remain open.

The fallen hospitality entrepreneur confirmed the sale of seven remaining stores, down from a high of almost 30, to Mr Strachotta earlier this month.

Buzzfeed has reported some staff were told the entire company was in liquidation after the deal fell through.

Mr Caspaney is due to send a report to creditors within 10 business days of the liquidation process starting, with a creditors’ meeting likely to follow.

Jorge Branco

Jorge Branco is a crime reporter at the Brisbane Times

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