Pialligo Estate Liquidation

MEDIA RELEASE 

LIQUIDATORS APPOINTED TO WIND UP CANBERRA’S 
ICONIC PIALLIGO ESTATE

Canberra’s well-known Pialligo Estate farm, tourism and hospitality business has appointed liquidators RSM Australia Partners Frank Lo Pilato and Jonathon Colbran to wind up the iconic estate.

On 8 April 2023, Mr Lo Pilato and Mr Colbran took control of Pialligo Estate Operations Pty Ltd ­­– being one of a number of entities within the Pialligo Estate Group – whose operations were limited to trading the Estate’s farm, tourism and hospitality business.

The appointment of the liquidators follows the 28 March announcement by Pialligo Estate Operations Director John Russell that the Estate had ceased operating after the business was unable to reach an agreement with its financier to continue trading.

Mr Lo Pilato said, according to Mr Russell, the demise of Pialligo Estate was the result of compounding losses generated by a domino effect of events including two fires involving two different Estate business premises in 2016 and 2017, increased insurance costs, the impact of natural disasters (including bushfires, hailstorms and unseasonably wet weather), COVID, supply chain and logistics challenges, staffing, lost vintages/farm production, and rising interest rates. 

“The winding up of this once prominent Canberra farming, hospitality and tourism destination is a devastating blow for its staff, suppliers and its many private and corporate guests,’’ Mr Lo Pilato said.

“It is also a significant blow for Canberra’s farming, hospitality and tourism industries,’’ he said.

“Our initial investigations of the financial statements and records of Pialligo Estate have identified more than 500 secured and unsecured creditors. This includes the Australian Taxation Office, over 200 casual and full-time staff, circa 170 suppliers and 110 customers who had paid deposits for future bookings.

“We estimate these creditors are owed a total of more than $6 million. These are early figures and are likely to change following more detailed investigations over the course of the liquidation.” 

Mr Lo Pilato said the liquidators were preparing a brief report which was expected to be issued to all known creditors this week to inform them about the liquidation process and their rights. 

“Importantly, as part of the liquidation process Pialligo’s employees will now be able to access the Fair Entitlements Guarantee (FEG) scheme – a federally funded safety net that enables eligible employees of an employer in liquidation to lodge a claim for assistance for certain categories of unpaid employment entitlements. All employees will be contacted in due course with details of how to directly access this scheme,’’ he said.

“Based on our initial assessment of the company’s financial position, there is presently insufficient money to pay a dividend to creditors including those customers who had paid deposits for bookings. 

“Our investigations are ongoing, but at this stage it is not clear that there will be enough money to pay a dividend to creditors. This is obviously not the outcome anyone wants to see,’’ Mr Lo Pilato said.

However, he encouraged those customers who had paid their deposits by credit card to immediately discuss their situation with their lender to assess their options.

“We understand this will be devastating news, but we wanted to inform customers as soon as possible so they can make alternative arrangements to secure a venue for their special events.”

Mr Lo Pilato said the liquidators would now conduct a detailed investigation into the company’s business and financial affairs to ascertain its total liabilities and assets.

“A further statutory report on the final outcome of the liquidator’s investigations will be provided to creditors in approximately three months’ time,’’ he said.

RSM Australia has established the following contact points for creditors:
Staff ­– [email protected]
Customers and suppliers – [email protected]
Phone: (02) 6217 0246