One of Fraser Island’s largest tour operators has been placed into administration with debts of more than $3 million, but the administrator says she is confident of selling the business.
Administrator Julie Williams, of Brisbane’s Insolvency and Turnaround Solutions, told SmartCompany there is strong interest in the tour operator, Fraser Island Company.
The group operates tours, a backpackers’ resort and a real estate business on the World Heritage-listed island off the Queensland coast.
Williams says she has pulled all tour vehicles belonging to tour operator Fraser Island Company off the road for mechanical checks as a matter of standard procedure, but has retained all staff and has shifted tourists onto other tours.
“There is every intention of selling the business, and doing that quickly, and to ensure the future of the business and the staff,” Williams says.
She said that despite the high Australian dollar and the current slump in the Australian tourism sector, visitor enquiries remain strong and the business is in good shape.
Williams also says she is working with Tourism Queensland to ensure the reputation of the state’s sector is not damaged by the collapse.
The secured creditor of the business, Westpac, has appointed John Greig and Richard Hughes of accounting firm Deloitte as receivers.
Unsecured creditors are owed more than $3 million. The biggest creditors include the Australian Tax Office, which is owed over $1 million, Queensland’s Office of State Revenue, which is owed over $300,000 and Ray White Hervey Bay, which is owed almost $40,000.
Williams says all tourists affected by the collapse have been extremely understanding and she expects tours to begin again soon.
In other insolvency news, Sydney construction group Wallis Constructions has been placed into administration.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
