Pialligo Estate's $4 million tax bill tops list of creditors far and wide

The collapsed Pialligo Estate food and hospitality business has a tax bill of more than $4 million, according to the liquidators’ initial creditors report.

The Australian Tax Office is one of 277 unsecured creditors listed in the report and is owed the lion’s share of the business’s total liability of $6,146,924.28.

Unsecured creditors are owed $5,578,799.85. There are 36 secured creditors named in the report.

Apart from the tax bill of $4,102,177.44, Pialligio Estate owes money to federal government departments and agencies, utility companies, local and interstate suppliers, contractors, trades, law firms, assorted businesses, employees and customers who had paid deposits.

Even ACT Snake Handlers has not been paid for its services.

When announcing that it was winding up the business last week, liquidators RSM Australia said initial investigations had identified more than 500 secured and unsecured creditors, including more than 200 casual and full-time staff, about 170 suppliers and 110 customers who had paid deposits for future bookings.

The report also lists 218 employees.

Electricity and gas provider ActewAGL is one of the biggest creditors outside the Tax Office, with amounts totalling $83,172.36, while Icon Water is owed $15,470.70 and Origin Zero $20,308.92.

Federal Government departments include Defence ($2581.15), Industry ($9675), Treasury ($5043.75), Veterans’ Affairs ($1487.50) and DFAT ($1650), while the ACT’s Access Canberra is owed $10,236.25 and the ACT Government $500.

The Australian Federal Police is also owed $2200.

The list of suppliers ranges far and wide and includes wineries, breweries, liquor companies, hospitality suppliers and produce businesses.

Supplier of luxury champagnes, wines and spirits Moet Hennessy has an unpaid bill of $20,462.92 and wine importer Negociants Australia is in for $32,911.97, while Canberra district wine company Pinhooker Pty Ltd is owed $18,175.80. Other local winemakers listed include Clonakilla ($749.23) and Nick O’Leary ($1135.20), among a number of interstate wineries.

Pialligo also chalked up bills to Canberra drinks company Capital Liquor & Bev of $7023.63, brewer Bentspoke ($5723.86), Underground Spirits ($3355) and non-alcoholic drinks maker Altina ($4371.58).

Local produce suppliers left out of pocket include Sea Harvest at the Fyshwick Markets, which is owed $13,646.34, Sonoma Bakery ($4985.36), Longpark Meat Co in Fyshwick ($4411.29), Brindabella Food ($4395.15), PFD Food Service ($13,787.55.) and Fedra Olive Grove at Collector ($6008.56).

Interstate, Sydney food distribution business Foodlink Australia is one of the biggest creditors at $41,667.75, followed by Select Fresh Providores ($40,592.08).

Hospitality suppliers were also hit, with Alsco Pty Ltd one of the bigger creditors with an unpaid bill of $21,289.17, and Chemworks ($11,138.31), which has an outlet in Mitchell.

Law firms figure strongly, with Pialligo rattling up bills of $28,109.11 with Clayton Utz, $28,737.36 with Trinity Law and $9482.97 with HWL Ebsworth Lawyers.

Pialligo also owes security firm Xtreme Protection Group $21,151.25.

One of the biggest debts to trades is $27,850.50 to GMH Electrical, while Southern Plumbing Plus is owed $9870.79.

Of the more than 80 individuals listed, many would be those who had booked events and paid deposits. Some are owed more than $10,000.

But it is unlikely customers will recover their deposits.

Now that the business is in liquidation, the 218 employees will be able to access the Fair Entitlements Guarantee (FEG) scheme – a federally funded safety net – to claim their entitlements.

Pialligo Estate owner John Russell said the business’s demise was the result of compounding losses generated by a domino effect of events.

These included two fires involving two different Estate business premises in 2016 and 2017, increased insurance costs, the impact of natural disasters, the pandemic, supply chain and logistics challenges, staffing issues, lost vintages and farm production, and rising interest rates.

On 29 March, Pialligo Estate’s financiers took possession of the property at Kallaroo Road.

RSM’s Frank Lo Pilato said when announcing the winding up on 13 April that there was insufficient money to pay a dividend to creditors.

The liquidators’ investigations are continuing and a report on the final outcome will be provided to creditors in about three months.