An Australian technology company has collapsed and all staff have been sacked on the spot via email.
Melbourne-based E-Mersion Media (Aust) Pty Ltd, which had won big contracts with Formula 1 and world footballing body FIFA, has gone into liquidation.
Registrar Kim Woronzcak ordered that the business be placed into liquidation ‘on the grounds of insolvency’ in the Victorian Supreme Court on Tuesday.
It is understood that the company, which was in the business of digitising print magazines, owes more $13million to creditors.
It’s parent company in the UK is still operating, but The Commissioner of State Revenue started winding up proceedings against E-Mersion Media (Aust) Pty Ltd in March.
An Australian tech company has collapsed and all staff have been sacked via email
E-Mersion Media (Aust) was ordered into liquidation by the Victorian Supreme Court
Staff were informed via email that they had been terminated, effective immediately.
One woman, who spoke on the condition on anonymity, said she had feared the company was on the brink of collapse for a while.
‘It’s incredibly stressful, you’re waiting for the penny to drop constantly. You’ve always got this low level anxiety,’ she told news.com.au.
Mathew Gollant, of restructuring firm CJG Advisory, was the company’s appointed administrator.
He was then appointed liquidator the the hearing the following Tuesday.
Mr Gollant wrote to the remaining workers, explaining that E-Mersion Media (Aust) had to end their employment.
‘I note that you were stood down during the voluntary administration process, however, given the above, I regrettably advise that your employment is terminated effective 3 May 2024,’ he said in a letter.
‘You may be aware that the Department of Employment and Workplace Relations has a scheme called Fair Entitlement Guarantee (‘FEG’) to pay employees who have become redundant as a result of the insolvency of their employer and do not receive payment of these entitlements.’
It is understood that Mr Gollant encouraged staff to apply to the government scheme, but the scheme does not cover unpaid superannuation.
John Iliopoulos (pictured), the parent company’s only director, said ‘No one has more to lose in this than the parent company, the shareholders which obviously includes my family interest’
Last year, half of its then 16 staff, including some senior leaders, left while E-Mersion Media (Aust) faced legal disputes and criticism of some of its spending on expenses.
Among the creditors are the Australian Taxation office, which is owed $1.1million, the firm’s accountants, who are owed $23,000, and former employees who claim to be owned sums ranging from $2,000 to around $100,000.
The biggest creditor by far, though, is the parent company, which claimed it is owed $11.4million.
John Iliopoulos, the company’s only director, said ‘No one has more to lose in this than the parent company, the shareholders which obviously includes my family interest.
‘I have and will continue to fight to try and save [the company],’ he said.
Mr Iliopoulos previously said the high travel expenses are ‘just part of our business’.
‘We’re an Australian company, all our contracts are based overseas.
‘It would have been way more expensive to book individual hotels for a month. It did work out cheaper to book (the villa) for the year.
‘We continued to negotiate deals in Qatar, I don’t think it was a waste of money.’
More to come.