A suburban supermarket has closed its doors just days before Christmas because it was unable to restock its shelves after struggling to pay a supplier $400,000.
The IGA at Werrington, near Penrith in western Sydney, went into liquidation on Christmas Eve.
The supermarket, that also sold alcohol, had been closed since the weekend when shoppers would traditionally have been flocking there to buy a festive turkey and the trimmings of a Christmas lunch.
Miller Tate Families Pty Ltd owned the Supa IGA in the Werrington County Shopping Village.
But this company, established in 2020, is now being wound up, leaving 20 staff in limbo just before Christmas.
Liquidator Steven Kugel, a founding partner of The Insolvency Experts, said the company behind that suburban IGA owned 50 creditors more than $500,000 but $400,000 of that was owed to one supplier.
Kevin Tate, the 60-year-old sole director and shareholder of Miller Tate Families Pty Ltd, had mortgaged his home to run the business, and voluntarily appointed The Insolvency Experts to handle the liquidation after being unable to secure supplies needed to stock the shelves.
'There's no viable business because he can't get his hands on supply,' Mr Kugel told Daily Mail Australia.
A suburban supermarket has closed its doors just days before Christmas because it was unable to restock its shelves
'There is a serious cashflow problem with this company – it didn't have money to open. It obviously didn't work.'
The IGA store on Dunheved Road was independently owned but it had paid a licence fee to parent company Metcash, which is listed on the Australian Securities Exchange.
The New South Wales Independent Liquor and Gaming Authority in August last year gave Miller Tate Families Pty Ltd approval to sell alcohol at the IGA between 8am and 7pm from Monday to Saturday and 10am to 6pm on Sundays.
They had hired Hatzis Cusack Lawyers to help them with their liquor licence application, and gained permission to sell alcohol within a small area of the existing supermarket, despite Werrington County having a 'higher than average rate of alcohol-related disorderly conduct' and 'higher than average rate of malicious damage to property'.
But the liquor authority also noted alcohol-related assaults were lower in the Penrith council area on average compared with the rest of the state.
The IGA at Werrington, near Penrith in western Sydney , went into liquidation on Christmas Eve
Miller Tate Families Pty Ltd, now registered to a residential Penrith apartment, was established in March 2020 when a Covid pandemic was declared in Australia.
Metcash told Daily Mail Australia that IGA has independently-owned stores in New South Wales rather than franchises.
It is the second Western Sydney business to go under in a matter of days.
The Orchard, billed as 'western Sydney's most memorable venue', comprises of a restaurant, café and garden bar in Penrith, about 60km from the city's CBD.
Owners thanked the community for the ongoing support as they announced the shock closure in a post to social media on Wednesday.
'We are grateful for the ongoing support of the Penrith community and hope to remain a venue where you can celebrate your special occasions for many years to come,' The Orchard said in a statement.
'It is very much business as usual. Rest assured, we will keep everyone informed as we move forward through this process.'
Administrator Graeme Beattie from insolvency firm Worrells described The Orchard as 'one of Western Sydney's premier hospitality venues'.
'This decision comes after a period of challenging market conditions, including rising operational costs, changing consumer behaviour, and reduced discretionary spending, which have all contributed to an unsustainable financial position,' he said.
Mr Beattie said he was undertaking an 'urgent financial analysis' of the company.
