Liquidators move to deregister Southern Hospitality Australia

A failed Sydney hospitality company is set to be deregistered after going into voluntary administration in late 2018 owing $7 million.

Liquidators for Southern Hospitality Australia and its associated company, steel fabricating business Project Stainless, have told unsecured creditors they will not receive all of their money back as they move to deregister the company.

Administrators Andrew Sallway and Duncan Clubb of BDO Australia said that priority and secured creditors have been paid in full, while a final dividend will be paid in August.

“Unsecured creditors received a first dividend of 27 cents in the dollar,” a BDO spokeswoman said.

“Following the final dividend, the Deed of Company Arrangement will be finalised and the Company deregistered.

“Unsecured creditors will not receive full payment of their outstanding debts.”

The Southern Hospitality brand continues to operate in New Zealand where it was founded.

The liquidators laid the blame of the restaurant supplier’s demise down to “poor stock management … And an ineffective business model with a high cost base.”

Sheridan Randall, 18^th June 2020