The company behind North Sydney advertising agency McCorkell and Associates has gone into liquidation, putting some staff out of work, with pay missing in the week before Christmas.
The business itself, however, has been "sold" and is operating under new company structure with a similar name, McCorkell Group.
Insiders say 18 staff were told in a letter “your services are no longer required” and that there was uncertainty over whether wages, leave and superannuation entitlements would be paid.
Liam Bailey of insolvency firm O'Brien Palmer was appointed liquidator to McCorkell and Associates on December 15, according to records at corporate regulator ASIC.
The same day, the liquidator told sacked staff that entitlements were a “priority debt” but it was “unclear” whether there were sufficient funds.
They’ve been told they may have to use the Fair Entitlements Guarantee Scheme, a legislative safety net scheme of last resort.
One now ex-employee on LinkedIn: “My heart breaks for 18 amazing and talented employees that were let down.”
And: “To be dropped right before Christmas without notice or pay … is, to say the least, humbling & upsetting for us all.”
Employees received a letter dated December 15 from Liam Bailey at O'Brien Palmer, which reads in part:
"The Company ceased to trade following the sale of its business. Accordingly, notice is hereby given that your services are no longer required and your employment with the Company was terminated effective immediately.
"Your entitlements which have accrued will be dealt with as a priority debt in the Liquidation. In this regard, I am in the process of obtaining the books and records of the Company in order to quantify your outstanding entitlements and will write to you shortly to confirm these amounts.
"At this stage it is unclear whether there will be sufficient funds in the liquidation to enable me to make any distributions to the Company’s employees."
The business is now trading under a slightly different name, describing itself as a strategy, creative, marketing, digital, events and content agency.
McCorkell Group Pty Ltd was registered as a company on November 24. Its sole director is Scott McCorkell, founder and CEO of McCorkell and Associates. Its Walker Street, North Sydney, address is the same as McCorkell and Associates.
LinkedIn lists McCorkell and Associates with 114 employees, including an operation in Japan. The Singapore website appears to be down.
Scott McCorkell told AdNews: “McCorkell & Associates has undertaken a business restructure due to COVID over the last 3 years.
“As part of the restructure, on 15th December 2022, client accounts and services will be transferred to McCorkell Group Pty Limited.
“The new ‘McCorkell Group’ name will be more inclusive of our operations across Asia Pacific. As part of this, our capability remains as is and we are in a strong position to support client ambitions moving forward.”
He understood “all staff will receive all money owing including super”.
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