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Newcastle Herald
Newcastle Herald
Business
Madeline Link

Liquidator appointed as Fone Works ordered to wind up shop

The Fone Works shop inside Marketown at Newcastle.

JUST four days before a winding up order was handed down and a liquidator appointed, the Newcastle Fone Works shop offered specials and discounts to customers in a Facebook post.

The Newcastle Fone Works shop located opposite Woolworths and Doc's Mega Save Chemist at Marketown appeared to still be open on Tuesday.

The Australian Securities and Investments Commission (ASIC) published a winding up order notice for the company, FoneWorks Partners Pty Ltd, on September 6.

A winding up order is a court order that requires a company to cease trading so its assets can be sold to pay creditors.

An ASIC spokeswoman said FoneWorks Partners Pty Ltd is currently under external administration.

"ASIC administers insolvency law but winding up orders are typically issued by a court following an application, often from a creditor, seeking to wind up the company due to insolvency or other reasons," she said.

"Once a company is ordered to be wound up, a liquidator is appointed.

"The liquidator assumes control of the company and one of their duties is to determine whether the business can continue to trade or should cease operations."

The spokeswoman said typically companies subject to winding up orders cease trading unless the liquidator deems it necessary to continue for a short period to protect the interests of creditors.

"The liquidator will make the decision on when or if trading will cease," she said.

"Customers with outstanding warranties, vouchers, or repairs may be considered unsecured creditors in the liquidation process.

"They may submit claims to the liquidator to recover the value of their claims."

Fone Works posted in a local Facebook community group offering $20 off screen repairs, $10 discounts on battery replacements and buy one, get one 50 per cent off on phone cases and chargers on September 2.

An application to wind up the company was lodged in July by the Deputy Commissioner of Taxation.

Jones Partners firm principal Bruce Gleeson has been appointed as liquidator for Fone Works Partners Pty Ltd.

Mr Gleeson has more than 25 years' experience in corporate insolvency, restructuring, crisis management and bankruptcy.

The Newcastle Herald has contacted Mr Gleeson and Fone Works for comment.

According to its website, Fone Works also has shopfronts at Campbeltown, Chatswood Chase, Macquarie Centre, Rundle Place, Noarlunga Centre and Dubbo Square.

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