Novelty coffin company dies with $70k ATO debt
A BRISBANE company involved in personalising coffins has closed, owing almost $70,000 to the Australian Taxation Office.
Procloud Group Pty Ltd, trading as Creative Coffins Australia, went into liquidation earlier this month.
Nick Combis of Vincents Chartered Accountants was appointed liquidator to the company, which is owned by Eatons Hill man Michael Jackson.
Procloud Group specialises in web design and signage.
It also offers a unique way for people to farewell their loved ones through Creative Coffins Australia.
Creative Coffins offered custom caskets wrapped in team colours, patriotic symbols or personalised memories.
"Death is an unwelcome surprise to many, and we try to avoid it wherever we can," its website notes.
"When a loved one passes, you can be left trying to answer the many questions that come with seeing off a cherished member of the family.
"We believe that you'll be surprised at how a custom coffin can be used to tell a story about the wonderful life that your loved one has lived."
Procloud Group owes $68,646 to the ATO, a report authored by Mr Combis revealed.
The company also owes $841.30 on an ANZ credit card.
It has $4900 in assets and owes unsecured creditors a total of $69,487.
Earlier this month Mr Jackson said Creative Coffins was still trading, but declined to provide any details.
Mr Combis' report about the company's affairs sent to creditors reveals Procloud Group was incorporated by a director-related entity, Tom Haldys' Christmas Tree Enterprises, as a partnership vehicle.
"It allowed the director to develop the business with the assistance of a partner without jeopardising the director's other companies, which operate similar businesses," the report said.
Shortly before Mr Haldys resigned as a partner in March he incorporated his own company as Procloud Marketing, which operates a similar business to Procloud Group.
"As a result, the company lost some of its customers to Procloud Marketing, resulting
in a significant and unsustainable fall in the company's revenue," the report to creditors noted.
Mr Jackson said the fall in revenue was about $50,000 each month.
Half of the company's six employees were terminated as a result of the business downturn while the remaining workers were transferred to a director-related entity under new agreements.
All entitlements were paid.
"My urgent investigations into the affairs and trading history of the company are continuing," Mr Combis' report said.