The Australian Tax Office is seeking to wind up the long established Byron Bay Cookie Company.
Fairfax Media reported that the 20 year old gourmet biscuit producer has been hit with court documents filed by the Deputy Commissioner of Taxation last Thursday in the Federal Court.
It is unclear how much the company, owned by Slater International, owes the tax office.
‘We’re fully aware of it and attending to it,’ the company’s director, Jacqueline Schurig, told Fairfax Media.
‘We fully expect to keep operating still through this year,’ she said, but refused to reveal the extent of the company’s debts.
The report says that just two days before the wind up was sought, the Byron Bay Cookie Company announced plans to take their franchising model global.
The company employs many locals at its Byron Bay factory in the industrial estate and also operates six shops, including in David Jones food halls in four cities around Australia.
Slater International’s chairman, Gordon Slater, said in a company statement at the time: ‘After the success of our existing retail stores, we thought the timing was right to extend our retail footprint in Australia and abroad.’
The Fairfax Media report says the company continued to spruik franchising opportunities on its Facebook page after the tax office’s moves, posting links as recently as Tuesday afternoon.
When questioned about the timing of the franchising announcement, Ms Schurig said: ‘The court notice has been issued to only the manufacturing arm of the company, so it has nothing to do with the franchising aspect.’
The company has listed its business for sale to prospective franchisers prepared to make an investment between $125,000 and $145,000.
The company is basking in Oscar glory after its gluten free sticky date and ginger flavour treats were selected for the Academy Awards Red Carpet Celebrity Luxury Lounge goodie bags worth $US47,800 each.
The cookie business, with a reported annual turnover of $13 million, has partnerships with Qantas Airlines, Virgin Australia, Tiger Airways and Strategic Airlines.
It claims to bake over 60 million cookies a year and to sell in 40 countries.
In an interview with Food Magazine in February this year, Gordon Slater hinted at the financial challenges presented by the Australian dollar and the payroll tax.
‘With the high Australian dollar, and without very much productivity growth, all of a sudden we’re not as competitive from an export point of view,’ he told Food Magazine.
‘Payroll tax is another challenge, I was over in Europe recently and they laugh at our payroll tax. They say “We want to employ people, we’ll give you a grand if you will employ these people for us!” and we’re kind of crazy in Australia, we’re creating a situation where it’s difficult to employ people.’
The company’s external accountant, Gromek Charles, based in Belmont, refused to comment on its financial woes.
The legal representative for the tax office, Khaled Metlej of Craddock Murray Neumann lawyers, refused to comment.
The matter will be heard in the Federal Court on April 12.
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