Carwash chain collapses for second time

Carwash chain Carlovers has collapsed for the second time in eight years, with both receivers and liquidators appointed to the group in a dramatic day.

Malaysian company Berjaya, which owns 95% of Carlovers, appointed receivers Ken Whittingham and Atle Crowe-Maxwell of PKF Chartered Accountants as receiver and manager of the business.

However, reports suggest liquidators from accounting and insolvency firm Bentley’s were also appointed to the company yesterday by the Queensland Supreme Court, after a creditor of Carlovers took action to recover debts.

Paul Fordyce, principal of PMF legal, confirmed today that he was the creditor who petitioned the court to appoint a liquidator.

Asked whether he expects to recover his debt, Fordyce declined to comment.

“It’s all in the hands of the liquidator now,” he told SmartCompany.

Ken Whittingham was unavailable to comment prior to publication, as were representatives from Bentley’s.

The latest collapse of Carlovers is another strange twist in what has been a sad tale.

Berjaya acquired the majority of Carlovers in 2003 after the business – then listed on the Australian Securities Exchange – was placed in administration.

Then followed four years of hell, after now-disgraced liquidator Stuart Ariff got hold of the company.

Ariff charged $13 million in fees to chase the $4.5 million of debts Carlovers had when it went into administration. His actions in this matter and others would later lead to a Federal Parliamentary inquiry into the insolvency profession.

Berjaya regained control of the business in 2007 and emerged from administration in the same year.

Carlovers currently runs 25 locations around Queensland, New South Wales, Victoria and South Australia.

Receiver Ken Whittingham told the Australian Financial Review that he plans to keep the business trading while the search for a buyer for the business was launched.