IGA supermarket closes its doors permanently just days before Christmas as family-owned business struggles to get supplies
- IGA in Sydney’s west is closing ahead of the festive season
A suburban supermarket has closed its doors just days before Christmas because it was unable to restock shelves after struggling to pay a supplier $400,000.
The IGA in Werrington, near Penrith in Sydney’s west, went bust on Christmas Eve.
The supermarket, which also sold alcohol, had been closed since the weekend as shoppers traditionally flocked there to buy a festive turkey and the trimmings of a Christmas lunch.
Miller Tate Families Pty Ltd owned the Supa IGA in the Werrington County Shopping Village.
But this company, founded in 2020, is now closing down, leaving 20 employees in limbo just before Christmas.
Liquidator Steven Kugel, a founding member of The Insolvency Experts, said the company behind the suburban IGA had 50 creditors, more than $500,000, but of that $400,000 was owed to one supplier.
Kevin Tate, the 60-year-old sole director and shareholder of Miller Tate Families Pty Ltd, had mortgaged his house to run the business, and voluntarily appointed The Insolvency Experts to handle the liquidation after he failed managed to secure the supplies needed to stock the shelves. .
“There is no viable business because he can’t get his hands on the supply,” Kugel told Daily Mail Australia.
A suburban supermarket closed its doors just days before Christmas after being unable to restock its shelves
‘There is a serious cash flow problem at this company: it had no money to open. It clearly didn’t work.’
The IGA store on Dunheved Road was independently owned but had paid a license fee to parent company Metcash, which is listed on the Australian Securities Exchange.
The New South Wales Independent Liquor and Gaming Authority in August last year gave Miller Tate Families Pty Ltd permission to sell alcohol at the IGA between 8am and 7pm Monday to Saturday and 10am to 6pm on Sundays.
They hired Hatzis Cusack Attorneys to help them with their liquor license application and were granted approval to sell alcohol within a small area of the existing grocery store, despite Werrington County having a “higher than average rate of alcohol-related disorderly conduct” and “a higher than average rate of intentional damage to property.”
But the liquor authority took notice too alcohol-related assaults were lower on average in the Penrith council area compared to the rest of the state.
The IGA in Werrington, near Penrith in Sydney’s west, went bust on Christmas Eve
Miller Tate Families Pty Ltd, now registered in a residential apartment in Penrith, was established in March 2020 when a Covid pandemic was declared in Australia.
Metcash told Daily Mail Australia that IGA has independent stores in New South Wales rather than franchises.
It is the second Western Sydney company to go bankrupt within days.
Billed as ‘Western Sydney’s most memorable venue’, The Orchard consists of a restaurant, café and garden bar in Penrith, approximately 60km from the city’s CBD.
Owners thanked the community for its continued support as they announced the shock closure in a social media post on Wednesday.
“We are grateful for the continued support of the Penrith community and hope to continue to be a venue to celebrate your special occasions for many years to come,” The Orchard said in a statement.
‘It’s very much business as usual. Rest assured we will keep everyone informed as we go through this process.”
Administrator Graeme Beattie of insolvency firm Worrells described The Orchard as ‘one of Western Sydney’s finest hospitality venues’.
“This decision comes after a period of challenging market conditions, including rising operating costs, changing consumer behavior and reduced discretionary spending, all of which have contributed to an unsustainable financial position,” he said.
Mr Beattie said he was carrying out an “urgent financial analysis” of the company.