Heating company collapses, owing millions with all staff sacked

A company that owned a string of air conditioning and heating businesses has collapsed, owing up to $2million and leaving staff jobless.

Pact Services Group fell into liquidation on March 20, with its companies Pact Heating and Cooling, Pact Commercial, Pact Home Solutions, Pact Solar, Pact Service and North East Heating, Cooling and Solar all closing up shop. 

Pact Services Group owes more than $2million to at least 100 creditors in total, news.com.au reported.

One former staff member told the publication he’d been sacked on the spot once the company entered liquidation and said employees had been left ‘high and dry without wages and superannuation’. 

Jason Stone and Paul Allan of restructuring firm PKF have been appointed liquidators. 

The company, which had its headquarters in Dandenong in Melbourne‘s southeast, offered construction and maintenance services in air-conditioning, electrical, plumbing and solar in commercial and domestic settings.

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The Australian Taxation Office, banks, staff, suppliers and landlords are all listed as creditors. 

Staff were sent an email by the liquidators informing them they had entitlements owed to them.

‘We have been advised that you are a former employee of the company and company records indicate you have accrued entitlements owing to you as an employee,’ it read.

‘There are presently insufficient funds in the liquidation to discharge your outstanding employee entitlements, In this regard, we request that you proceed to lodge a claim with the Department of Employment.’

The ex-staffer said there were redundancies at the end of last year and about eight or nine out of the 30 workers in his office were let go. 

Pact Services Group is understood to have been running for about 47 years.