CAFÉ and homewares store Bake, Table and Tea is expected to keep trading, saving the jobs of more than 20 people after the company behind the business went into liquidation.
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The business has been purchased from MJK (Bathurst) Pty Ltd, which was ordered to wind up by the Federal Court at the start of August, 2023.
The sale has been confirmed by both the liquidators, O'Brien Palmer, and the previous business owner, Melissa Kelly of MJK (Bathurst).
While the new owner's details have been kept confidential, Ms Kelly said they don't plan to make changes to Bake, Table and Tea.
"What they have said is that they love the shop how it is and they are not planning on changing anything in how the shop looks and feels," she said.
"Which for all the staff here is a massive relief that they will all keep the jobs and from a customer perspective, Bake Table and Tea will continue to trade.
"What's even better is that it is still a locally owned business so whatever money is spent in store, remains in Bathurst, so please come in and support the new owners and keep shopping locally."
Ms Kelly will remain an employee of Bake, Table and Tea under the change of ownership.
"I [have] been offered and accepted the role of manager and that will allow me to keep my passion and excitement for what the store and café provides," she said.
"I am looking forward to all the new spring ranges about to arrive and getting back into our workshops."
Liam Bailey, one of the appointed liquidators from O'Brien Palmer, confirmed that the sale of the business will not impact the liquidation process continuing for MJK (Bathurst).
"Once the sale completes, we will deal with the liquidation in the ordinary course, including conducting any required further investigations into the history and affairs of the company and the recovery of funds for the benefit of creditors should claims be identified against any parties," he said.
Ms Kelly said the liquidation process will not impact the trading of Bake, Table and Tea.
Multiple creditors have voluntarily provided the Western Advocate with a copy of O'Brien Palmer's report to creditors, prepared by Mr Bailey and his colleague Christopher Palmer during the voluntary administration process.
The report, dated July 28, 2023, said the directors of MJK (Bathurst) had informed them that the insolvency was "attributable to the declining economic conditions caused by the COVID-19 pandemic and subsequent lock downs".
Insolvency occurs when a company is unable to pay all its debts as and when they become due and payable out of the company's own cash resources, where there is no realistic prospect of generating further money from further financial accommodation or from the sale of company assets.
The O'Brien Palmer report states that Bake, Table and Tea sustained trading losses of $476,125 during the six financial years to June 30, 2023 and the period ending July 3, 2023.
The report also says the Australian Taxation Office has submitted a claim for $1,170,408.66, comprising of running balance account (RBA) deficit debts, income tax, general interest charges (GIC) and superannuation guarantee charges (SGC).
Also in the O'Brien Palmer report is mention of debts to 44 known ordinary unsecured creditors totalling $1,689,665.
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