Two struggling Domino’s takeaway pizza restaurants have been sold in a part of Sydney facing higher mortgage stress.
The franchises in Fairfield Heights and Moorebank, in the city’s far south-west, were sold to new management this year before their previous owners went bankrupt.
This happened as the cost of living crisis hit and saw Australians cut back on spending, meaning less money for takeaway pizza and garlic bread, while petrol prices rise above $2 per liter again.
The Australian Securities and Investments Commission has revealed the extent of the problem as Foodtreat Pty Ltd goes into administration this week, as the former owner of Domino’s in Fairfield Heights.
Credit rating agency Moody’s Investors Service ranks Fairfield as one of Australia’s worst areas for mortgage stress, with borrowers struggling to pay their bills.
Two struggling Domino’s takeaway pizza restaurants have been sold in a part of Sydney facing higher mortgage stress
In this part of south-west Sydney, 3.17 per cent of people with a mortgage are 30 days or more in arrears.
That’s double the national average of 1.57 percent.
The ASIC announcements also revealed that Flavorfood Pty Ltd went into administration on October 30 as the previous owner of Domino’s at Moorebank.
Moorebank is located next to Casula, where 2.92 percent of borrowers are in arrears.
Shumit Banerjee, a registered liquidator and chartered accountant with Westburn Advisory, said the two companies under his management had sold the franchises back to Domino’s.
“I understand these stores, stores have been sold back to the franchisor, I am not aware of their current trading status,” he told Ny Breaking Australia on Wednesday.
“A number of people owned the stores.”
Foodtreat and Flavorfood are two separate companies with common shareholders.
‘Each entity previously had separate franchises and stores,” Banerjee said.
Sydney’s south-west is the third worst area in the state for mortgage arrears.
This area has three suburbs on the ‘worst five’ list for mortgage arrears in New South Wales, with Cabramatta also on the list.
This data covers May before the Reserve Bank of Australia raised rates again in June for the twelfth time in just over a year.
The RBA is widely expected to raise rates again on Melbourne Cup Day next week, with inflation at 5.4 per cent, still well above the two to three per cent target.
Those who have a job and have paid off a mortgage are hardest hit by the cost of living crisis. New data from the Australian Bureau of Statistics shows the cost of living for workers rose by as much as nine per cent in the year to September.
By comparison, the cost of living for retirees rose by 5.7 percent, or a level only slightly above inflation, with those in the older age group more likely to have paid off a mortgage, saving them repayments or rent nightmares.
A Compare the Market survey of 1,000 Australians conducted in August found that 28.6 percent of Australians had no savings, with younger Gen Zers more likely to be struggling.
The Australian Securities and Investments Commission has revealed the extent of the problem as Foodtreat Pty Ltd goes into administration this week, as the previous owner of Domino’s in Fairfield Heights said.
Those who have a job and are paying off a mortgage are being hit hardest by the cost of living crisis. Data shows the cost of living for workers rose by nine per cent in the year to September.