Doughnut Time collapsed owing $3m
THE now-defunct Doughnut Time chain operated by bankrupt Brisbane hospitality identity Damian Griffiths collapsed owing nearly $3 million.
An initial report released by liquidator Michael Caspaney today revealed more than 300 employees across the country have lost their jobs.
The outlook for more than 130 unsecured creditors, such as suppliers and tradies, is "hopeless'' and they will recover none of their moneys owing, Mr Caspaney said.
He was appointed liquidator on March 9 over eight Doughnut Time stores, as well as Mr Fitz's Finest Ice Cream.
Staff had complained for months about stalled wage payments, with estimates suggesting they could be owed $200,000 or more.
Many were casual workers who, at best, will be able to recover up to three months of unpaid wages and leave through the Federal Government's Fair Entitlements Guarantee scheme.
Mr Caspaney said he would continue investigating the Doughnut Time group, which had outlets in Brisbane, the Gold Coast, Sydney and Melbourne.
He expects to release a final report in three months and plans to convene a meeting of former employees and creditors before then.
Meanwhile, Doughnut Time's former chief executive, Dan Strachotta, continues to run the Les Bubbles venue in Brisbane originally opened by Griffiths.
The Griffiths company originally set up to operate Les Bubbles crashed in December owing $1.32 million, with liquidators concluding it may have been insolvent since late 2015.
Two other venues launched by Griffiths, the Limes Hotel and Alfred & Constance Bar, were seized by bank-appointed receivers in December and are now on the market for sale.
Griffiths declared personal bankruptcy last week with unsecured debts of $3.3 million.
That followed a legal victory by his Toowoomba-based relatives, who won court orders in December to recover more than $550,000 owing from a 2014 loan.