Sale sign up for Wax Converters Textiles as firm enters voluntary administration

On 26 August, Sule Arnautovic from Salea Advisory was appointed voluntary administrator of the Rutherford-based company, which specialises in textiles, fabrics, canvas and PVC products and provides textiles to a wide variety of companies including key combat clothing and related accessories to the Australian Defence Force.

Products in the company’s portfolio include defence and camouflage fabrics, awning and sun blind fabrics, horse rug fabrics, architectural fabrics, transport PVC, caravan annexe fabrics and artistic canvases.

The company, which employs 65 staff, experienced a sharp fall in revenue from $18 million in the 12 months to 1 July 2023, falling 22 per cent to $14 million in the 12 months to 1 July 2024.

Its directors have advised that the reasons for the administration can largely be attributable to reduced product ordering from its key customers and resultant trading losses given the critical staffing capacity required by the company to maintain its operations.

Wax Converters Textiles was started by Jim Kelman in December 1991 and the current CEO and director James Kelman has been working in the business for almost 30 years. 

 All of the assets, business and undertakings of the company are now under the control of the administrator and an urgent assessment of the company’s financial affairs is underway.

Until further notice, the administrator is continuing to trade the company’s business with a view to exploring a restructuring/recapitalisation of the company via a Deed of Company Arrangement (DOCA) and/or implementing a Going Concern Sale of Business.

Parties interested in purchasing the business as well as all written queries from creditors of the company should be directed to the offices of Salea Advisory via email at [email protected].

An initial meeting of creditors has been scheduled for Wednesday, 4 September.

The future of the company will be decided at a second meeting of creditors, unless the Voluntary Administration period is extended.

At this stage, it is too early to advise if there will be any dividend or distribution paid to the ordinary unsecured creditors of the company. The administrator will issue further reports to creditors in this regard.

Wax Converters describes itself as a vertically-integrated operation with the company performing functions in weaving, dyeing, scouring and bleaching, finishing, coating, printing, sueding, brushing, shrinking, proofing and waxing – as well as in-house facilities including a research and development laboratory team and machinery designing and manufacturing capabilities. These initiatives and operations allow the company to be flexible, competitive and in total control of the key stages of each manufacturing operation.

“We proudly manufacture our fabrics within our Hunter Valley based state-of-the-art production facility. With accreditations to World’s Best Practice Program, our mill is recognised by great performance in terms of quality-controlled environments and procedures – not to mention the latest in production machinery technology and capabilities,” the company said.

“WCT fabrics are made to standards suitable to a wide range of customers which include – camping and industrial canvas, defence fabrics, PVC for truck tarps, banners, marine, automotive and general-purpose applications, awning fabrics, waxed cotton oilskin for drover coats, moleskin and rugged apparel and workwear fabrics, artist canvas, X-Ray screening, filtration, and the list goes on including custom-made projects.

“We aim to produce the highest quality fabrics at fair and reasonable prices, combined with an approachable and dedicated customer service team.”