The company behind a melbourne manufacturing business specialising in moulding and product and tool design has plunged into liquidation, owing over $4.6m to creditors.
The Dandenong South business, Prysm Industries, was facing legal action by the Victorian Workcover Authority over more than $185,000 in reported unpaid debts.
The company sold its assets and business to related party PRYSM Manufacturing in July this year, shortly before it first entered administration in August. The new owners continue to operate the business.
The creditors of Prysm Industries, including unsecured creditors owed $4.3m who are expected to walk away empty-handed from the collapse, tipped the existing company into liquidation on Tuesday.
This was a day before a scheduled hearing in Victoria’s Supreme Court where the business was facing a winding up order – a legal process where a court may force a company into liquidation – over the overdue Workcover insurance and late payment penalties.
The company has been operating as a family owned and run business for over 20 years, its website states.
“In that time, we have continued to grow with our customers, providing an efficient service and quality products,” it says.
“We’ve become an innovative…