Staff at failed advertising agency McCorkell & Associates, left without pay just before Christmas, have finally started to receive some money, insiders say.
The cash comes from claims by some 18 staff under the Fair Entitlements Guarantee, a federal government backed scheme of last resort.
Insiders say the amount transferred to bank accounts, more than 21 weeks after staff should have been paid, is less than the total amount owed and that it doesn’t include superannuation.
However, the letters from the Fair Entitlements Guarantee said the amount was an advance, so there could be more later.
The North Sydney agency founded in 1992 by Scott McCorkell, was wound up the week before Christmas 2022, with assets moved to a new company with a similar name.
Left behind in the old company was a string of creditors, including the Australian Tax Office (ATO).
Scott McCorkell, CEO and founder, "sold" the business on December 14, 2022, for $29,129.61 to a new company, McCorkell Group, which records show was registered November 24. Scott McCorkell is the company director.
McCorkell Group is trading with some of the staff transferred from the old business but has lost at least one major client, SAP Australia.
The original liquidator, Liam Bailey of insolvency firm O'Brien Palmer, estimated a funding deficiency of $1,358,987 and that staff were owed $445,272.82.
Bailey was removed in a vote of by dissatisifeid creditors. The new liquidator is Michael Hogan of Hogan Sprowles.
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