Chicken shop closes as administrator is appointed

A chicken shop in Woy Woy ceased trading on Tuesday, April 3, as a result of the company being placed in voluntary administration.

Red Lea Chicken employees were informed via email over Easter that their last day of work at the Deepwater Plaza outlet would be April 3.

Shops operated by franchisees have remained open but Woy Woy was one of six company-owned outlets that were closed as a result of the appointment of an administrator.

Staff owed wages and entitlements will be required to wait for payment as part of the winding up process.

McGrath Nicol Advisory has been appointed Administrator of Red Lea and will hold two creditors' meetings.

The first will take place on April 12 in Prospect and employees, as creditors, are entitled to attend and vote on the company's future.

Before attending the meeting, an employee will need to submit a proof of debt to McGrath Nicol.

According to ASIC, in general employee entitlements are paid in priority to other debts and are grouped into classes and paid in order of outstanding wages and superannuation, outstanding annual, sick and long servicer leave and then retrenchment pay including redundancy.

SOURCE:

Website, 5 Apr 2018

McGrath Nicol

Reporter: Jackie Pearson