More trouble for Adriano Zumbo who may have traded while insolvent

One of Adriano Zumbo’s venues in administration could have been trading while insolvent since mid-2017, according to preliminary investigations by the administrators.

Three of Zumbo’s businesses went into administration recently owing around $10 million.

Administrators Anthony Elkerton and Justin Holzman from DW Advisory have told creditors that one business, I’m So Fancy Pty Ltd, “may have been insolvent from at least early- to mid-2017”.

According to Fairfax, the administrators stated in their report “it is likely that the company engaged in insolvent trading prior to our appointment”. However, they said due to time constraints they were unable to determine a date of insolvency or “quantify any claim for insolvent trading”.

High end tea room I’m So Fancy ceased trading in 2017, during which time it reported trading losses of nearly $1.2 million since July 2015 and had also not been paying rent since earlier this year, according to the administrators.

Fairfax reports that the administrators claim the business had insufficient working capital to meet its short-term obligations since the 2016 financial year, has not appeared to have reported a net-positive asset position and does not appear to have complied with all tax lodgement obligations.

The details surrounding the business are still subject to further investigation.

Sheridan Randall - 23/8/18