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New South Wales based industry stalwart Wax Converters Textiles Ltd (WCT) has had its assets sold off following its liquidation last year.
New South Wales based industry stalwart Wax Converters Textiles Ltd (WCT) has had its assets sold off following its liquidation last year.
WFA understands that several of the company’s newer weaving machines have been sold to an Australian-based party, whilst some of the older looms were sold to a French-based company.
The fate of the remaining ancillary, proofing and QA plant remains unclear but net proceeds from the sale of plant and equipment came to $484,374 according to a statutory report to creditors.
Defab has officially acquired all WCT’s intellectual property including well-known names like Dynaproof, Billabong, DX12, BullDuck, and Coolabah for $74,000.
“We’ve acquired the IP, but we’re not just carrying on—we’re stepping things up,” Joe De Petro, CEO of Defab told WFA.
“With nearly five decades in the game, we know what it takes to make fabric that lasts. We’re taking these well-known products and making them better than they’ve ever been.”
WCT’s factory at 77 Racecourse Road, Rutherford, NSW, was put up for sale in late 2024 and as of time of publication is listed as “Under Contract” on RealCommercial.com.au
As reported in WFA November 2024 Newcastle-based WCT was placed into liquidation with the loss of 65 jobs in the latter part of last year.
WCT, which was founded by the Kelman family in 1991, produced awning and sun blind fabrics, defence and camouflage fabrics, horse rug fabrics, architectural fabrics, transport PVC, caravan annex fabrics and artistic canvases.
Administrators were appointed on 26 August 2024; they had sought to sell the company as a going concern or via a deed of company arrangement.
The company experienced a sharp fall in revenue from $18 million in the 12 months to 1 July 2023 to $14 million in the 12 months to 1 July 2024, equating to a 22 per cent drop.
In a media announcement released early September 2024, Kelman attributed falling revenues to the government delays to its Future ADF Clothing Systems.
The company owed some $28 million to a mix of secured and unsecured creditors at the time of appointment of administrators. Judo Bank and Moneytech, the two secured creditors, are owed over $17 million, Priority Creditors made up of employees is owed $1.4 million in entitlements and Unsecured Creditors $9.4 million, of which $4.4 million is owed to trade creditors and $970,910.16 to the Australian Taxation Office.
“It is likely the company may have been trading whilst insolvent and there may be a potential claim against the directors for insolvent trading and breech of director duties,” Sule Arnautovic, the liquidator from Salea Advisory said in his statutory report to creditors.
“It appears the company may have been trading whilst insolvent from at least mid-2022. However, further investigations would be required to determine the precise insolvent trading date, given the uncertainties regarding the current creditor position and the potential defences of the directors including related party support,” Arnautovic added.
