[ad_1]

A solar energy company has canned all of its employees and owes millions of dollars after the CEO was diagnosed with cancer. 

Victorian electricity and energy business G-Store Pty Ltd, which has its headquarters in Malvern, Melbourne, went into administration on February 13.

A majority of staff immediately lost their jobs and suppliers are still owed $3.8million in debts after the solar energy home improvement company closed its doors.

Sole director Dion Epstein made the decision to close the business he began in 2007 on February 7 after he was diagnosed with cancer.

The company is now in the hands of administrator Philip Newman of PCI Partners.

The company, which also had an office in Warragul about 100km east of Melbourne, owes a total of 139 unsecured creditors $2.2million, reported the Herald Sun.

Melbourne-based solar energy installer G-Store has entered administration owing $3.8m

Melbourne-based solar energy installer G-Store has entered administration owing $3.8m

Founder Dion Epstein personally guaranteed a number of loans himself before his cancer diagnosis

Founder Dion Epstein personally guaranteed a number of loans himself before his cancer diagnosis

Mr Newman wrote that a ‘small number of staff’ were retained to assist with ongoing inquiries through to February 13 before they were also let go. 

Mr Newman is now working to figure out how much each of the secured lenders are owed of the remaining $1.6million in debts.

Some of the debts are also owed to customers who paid to have solar energy systems installed into their homes but are still waiting for the installations. 

Mr Newman’s administrative report noted ‘a number of works’ where G-Store had received deposits from customers.

‘Unfortunately, these customers will now rank as unsecured creditors for the deposits paid to the company,’ the report continued. 

Staff are also owed $437,000 in unpaid annual leave, long service leave, superannuation and redundancy payments.

Another $24,000 is owed because the company had not paid superannuation since January 1.

G Store began reporting annual losses in 2021 and in its most recent financial year, reported a loss of $503,000. 

‘The above indicates that the company may have been technically insolvent since at least 30 June 2021,’ Mr Newman wrote.

However it was noted that thanks to Mr Epstein’s personal wealth, G-Store was able to stave off proper insolvency until January 2024.

Mr Epstein's father has offered all creditors 2.2 cents for every dollar they are owed

Mr Epstein’s father has offered all creditors 2.2 cents for every dollar they are owed

Mr Epstein owes his wife $85,000 and the Epstein Family Trust $247,012.75 for its help in keeping the company alive. 

Robert Epstein, Dion’s father, is the director of one of the company’s secured creditors, Coltvale Pty Ltd.

Coltvale Pty Ltd has put forward a deed of company arrangement (DOCA) application in the hopes to buy back G-Store after its debts are wiped. 

The application offers to provide creditors 2.2 cents back for every dollar they are owed and is now pending approval. 

The next creditor meeting will be held on March 8 and is set to address whether the DOCA will be accepted or if the company will enter liquidation.

Mr Epstein is facing bankruptcy if the creditors do not accept the offer as he personally guaranteed a number of debts.

G-Store only had $142,000 left in the bank when it entered administration.

The business’ stock has been valued at $145,000 and the company’s assets hold an estimated value of between $122,000 and $171,000.

[ad_2]
This post first appeared on Daily mail