Two Sydney Oporto franchises forced into liquidation by ATO
Oporto franchises owned by Jevnt Pty Ltd and Pymz Pty Ltd have raised the ire of the Australian Tax Office, which is forcing them to pay half a million in back taxes or shut down.
The companies owned franchises in Newtown and Darling Harbour, went into liquidation on Friday after the ATO issued their director, Ming Zhong, a notice to pay back taxes.
According to liquidator Henry McKenna, of Vincents, around $400,000 – $500,000 was owed to the ATO.
McKenna told news.com.au that Zhong had already been issued with a director penalty notice by the ATO and had 21 days to either pay the debt or go into liquidation.
Zhong would have been personally liable for the debt had he not taken action.
Oporto Newtown closed on Friday. The Darling Harbour store was already closed due to redevelopment of the Harbourside Shopping Centre which began in January 2023.
Around 20 casual or part-time staff of the Newtown store had been affected. However, McKenna said that it looked as though there were no other significant debts to supplier creditors.
McKenna hoped Newtown could re-open as a company-run store or under the control of a new franchisee.
“I’m talking with the franchisor about them coming in and reopening the Newtown store – either they’ll run it themselves or find another franchisee to run it,” he said.
Reopening the store would be subject to a landlord arrangement.
The stores were the victims of Covid-19 lockdowns, when the tax debt was accumulated. They also struggled with increased input costs.
There are currently more than 190 Oportos trading around Australia.
Recent data indicates that the quantity of food and beverage services undergoing external administration has surpassed pre-Covid levels, following a consistent upward trend throughout much of 2023.
Jonathan Jackson, 20th February 2024
