The administrators of collapsed financial planning group Storm Financial have closed the company’s 14 offices, putting 115 staff out of a job.
The administrators of collapsed financial planning group Storm Financial have closed the company’s 14 offices, putting 115 staff out of a job.
Administrators Raj Khatri and Ivor Worrell of Worrells Solvency & Forensic Accountants announced the closure yesterday. It is believed the bulk of the job losses – around 60 or 70 staff – were at the company’s headquarters in Townsville.
“The company’s income had reduced very significantly over recent months, resulting in trading losses being incurred at a rate which the company could no longer absorb,” the administrators said in a statement.
Storm collapsed late last week after being unable to repay a loan of around $10 million to the Commonwealth Bank.
The fate of the firm’s 14,500 clients remains unclear.
Storm’s website has also been closed down, with a message posted explaining that company has ceased trading.
“As a result of the company ceasing operations it is not in a position to transact further business for clients, however the administrators hope to be able to introduce alternative financial advisers to clients in the near future.”
A creditors meeting will be held in Brisbane next Tuesday.
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See also this week’s feature Five lessons from the collapse of Storm Financial
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