Sad reason for why solar energy company G-Store Pty Ltd collapsed with all workers losing their jobs and debts of $3.8million

A solar energy company has fired all its employees and owes millions of dollars after its CEO was diagnosed with cancer.

Victorian electricity and energy company G-Store Pty Ltd, headquartered in Malvern, Melbourne, declared bankruptcy on February 13.

A majority of staff immediately lost their jobs and suppliers are still $3.8 million in debt after the solar home improvement company closed its doors.

Sole director Dion Epstein made the decision on February 7 to close the company he started in 2007 after he was diagnosed with cancer.

The company is now owned by administrator Philip Newman of PCI Partners.

The company, which also had an office in Warragul, about 100 kilometers east of Melbourne, owes a total of 139 unsecured creditors $2.2 million. the Herald Sun reported.

Founder Dion Epstein personally guaranteed a number of loans before his cancer diagnosis

Mr. Newman wrote that a ‘A small number of staff were employed until February 13 to assist with ongoing investigations, before they too were dismissed.

Mr Newman is now trying to work out how much each of the secured lenders is owed of the remaining $1.6 million in debt.

Some of the debt is also owed to customers who paid to have solar energy systems installed in their homes but are still waiting for the installations.

Mr Newman’s administrative report noted: ‘a number of factories where G-Store had received deposits from customers.

“Unfortunately, these customers will now be considered unsecured creditors for the deposits paid to the company,” the report continues.

The staff is also to blame $437,000 in unpaid annual leave, long service leave, pension and severance benefits.

Another $24,000 is owed because the company failed to pay pension since January 1.

G Store started reporting annual losses in 2021, reporting a loss of $503,000 in the most recent fiscal year.

“The above indicates that the company may have been technically insolvent since at least June 30, 2021,” Mr Newman wrote.

However, it was noted that Mr Epstein’s personal wealth allowed G-Store to avert actual insolvency until January 2024.

Mr. Epstein’s father has offered all creditors 2.2 cents for every dollar they are owed

Mr. Epstein owes his wife $85,000 and the Epstein Family Trust $247,012.75 for her help in keeping the company alive.

Robert Epstein, Dion’s father, is director of one of the companies creditors, Coltvale Pty Ltd.

Coltvale Pty Ltd has put forward to apply for a deed of corporate arrangement (DOCA) in the hope of buying back G-Store after its debts are wiped out.

The application offers to provide creditors 2.2 cents back for every dollar they owe and now awaiting approval.

The next creditors meeting will take place on March 8 and will determine whether the DOCA will be accepted or whether the company will go bankrupt.

Mr Epstein faces bankruptcy if creditors do not accept the offer, as he personally guaranteed a number of debts.

Only G-Store had that There was $142,000 left in the bank when it went into administration.

The company’s stock is valued at $145,000 and the company’s assets have an estimated value between $122,000 and $171,000.