Latest news with #CreditorWatch
Perth Now
22-07-2025
- Business
- Perth Now
Restaurants, building firm insolvencies remain high
Insolvencies remain trending higher among the food and beverage sector, CreditorWatch says. (Dan Peled/AAP PHOTOS) Insolvencies remain trending higher among the food and beverage sector, CreditorWatch says. (Dan Peled/AAP PHOTOS) Credit: AAP The level of Australian businesses going under appears to be stabilising, but firms are still becoming insolvent at record-high numbers. Restaurants and construction firms remain hardest hit in CreditorWatch's monthly Business Risk Index, which found more than 14,000 businesses went bust in the 2024-25 financial year. But income tax cuts and government cost of living measures have helped the rate of insolvencies plateau, CreditorWatch said. And with defaulted payments falling 6.5 per cent in June, there is some hope the overall health of businesses is on the up. "It's a promising signal business cash flow pressures may be easing, but with insolvencies still running 33 per cent above 2024/25 levels, and particularly elevated in hospitality and construction, I'm not getting too excited just yet," CreditorWatch CEO Patrick Coghlan said. "We'll continue to monitor for early signs of sustained recovery, but the next six months will be critical for determining whether insolvency rates begin to fall or remain stubbornly high." Businesses were struggling to stay afloat in typically stable sectors such as health care and education, showing the breadth of the economic strain, Mr Coghlan said. Hospitality businesses remain under the pump, with one in 10 closing in the year to June 2025. While insolvencies have plateaued generally, they remain trending higher among the food and beverage sector. Australian Restaurant and Cafe Association CEO Wes Lambert said it was no longer a case of if a hospitality business would close, but rather which one would shut it doors. "It's a real threat for many businesses in the hospitality industry, especially those in CBDs with work-from-home now fully enshrined into employment culture, and with tourism remaining at levels not seen since 2016," he told AAP. "Demand is low while wages, rents, utilities, insurance and other expenses are between 30 and 50 per cent higher than they were before COVID-19." Mr Lambert said Australia needed to attract more tourists, and needed genuine discussion about the cost pressures on industries such as hospitality. A quarter of all business that became insolvent in 2024/25 were in the construction sector. But given the large overall number of construction businesses, less than one per cent of all of them became insolvent. CreditorWatch labelled a rise in education and healthcare insolvencies "somewhat unusual" given both sectors are largely underpinned by government funding. Education was hit by immigration and foreign student policies, they found. The 14,716 business insolvencies recorded in 2024/25 was a massive 33 per cent jump year-on-year.
Sky News AU
14-07-2025
- Business
- Sky News AU
Country Road to close QVB store in Sydney
Iconic fashion retailer Country Road will close down stores across Sydney as slowing sales force its South African owners to scale back its retail front. The business's landmark store in central Sydney's Queen Victoria Building will be shut down as the company looks to lower costs. It will also close its sister brand Trenery in Sydney's affluent Mosman, while its Pitt Street Mall store will close in 2028 when the lease expires. Country Road's South African owners Woolworths previously announced weak sales coming from the Australian brand. Sales plummeted by 6.2 per cent in the first half of the 2024-25 financial year and a further 8 per cent in the 26 weeks to December 29 as operating profits dropped 71.7 per cent to just $14.2m. Country Road was founded in 1974, starting out as a smart-casual men's, women's and children's clothing store while also dabbling in homewares and accessories. It grew out into an Australian lifestyle brand known for high-quality apparel, accessories and homewares and became the first major Australian brand to move into the US. In 2014, Country Road and Trenery were bought by South African brand Woolworths. Country Road's recent falls are in line with the collapse of dozens of retailers. Retail giant Mosaic Brands – owner of Millers, Rivers, Crossroads, Katies, Noni B and Autograph – collapsed into voluntary administration in October 2024. In a notice to creditors delivered in February, Mosaic's total debt was tallied at more than $318m. Iconic retailer Jeanswest also said it was hit by a 'perfect storm' of factors as it closed its stores in March, with 600 workers out of a job. CreditorWatch's latest insolvency data shows tax cuts and interest-rate relief is slowly passing through to businesses' bottom line. CreditorWatch's May data shows an easing in two key measures of business stress, insolvencies and B2B payment defaults, suggesting the July 2024 tax cuts, recent interest-rate reductions, slower inflation and fiscal support measures are beginning to alleviate some pressures on Australian businesses. CreditorWatch chief executive Patrick Coghlan said the May data on defaults and insolvencies was encouraging but some sectors remained under pressure. 'This levelling off of insolvencies has been long awaited and is very welcome but we need to remember that several industries still face significant challenges, particularly those exposed to discretionary spending,' he said. 'Post-Covid, we've seen inflation hit 30-year highs. 'Those rapid price increases across the economy don't reverse when the inflation rate comes down again – the higher prices are locked in and remain as permanent pressures for businesses.' Originally published as Fashion retailer to close flagship stores, citing sales pressure
Perth Now
14-07-2025
- Business
- Perth Now
Iconic fashion retailer shuts Aussie stores in major city
Iconic fashion retailer Country Road will close down stores across Sydney as slowing sales force its South African owners to scale back its retail front. The business's landmark store in central Sydney's Queen Victoria Building will be shut down as the company looks to lower costs. It will also close its sister brand Trenery in Sydney's affluent Mosman, while its Pitt Street Mall store will close in 2028 when the lease expires. Country Road's South African owners Woolworths previously announced weak sales coming from the Australian brand. Sales plummeted by 6.2 per cent in the first half of the 2024-25 financial year and a further 8 per cent in the 26 weeks to December 29 as operating profits dropped 71.7 per cent to just $14.2m. Country Road will close three of its Sydney stores. NewsWire / Andrew Henshaw Credit: News Corp Australia Country Road was founded in 1974, starting out as a smart-casual men's, women's and children's clothing store while also dabbling in homewares and accessories. It grew out into an Australian lifestyle brand known for high-quality apparel, accessories and homewares and became the first major Australian brand to move into the US. In 2014, Country Road and Trenery were bought by South African brand Woolworths. Country Road's recent falls are in line with the collapse of dozens of retailers. Retail giant Mosaic Brands – owner of Millers, Rivers, Crossroads, Katies, Noni B and Autograph – collapsed into voluntary administration in October 2024. In a notice to creditors delivered in February, Mosaic's total debt was tallied at more than $318m. Iconic retailer Jeanswest also said it was hit by a 'perfect storm' of factors as it closed its stores in March, with 600 workers out of a job. Country Road is just one of many retailers struggling with cost-of-living pressures. NewsWire / Andrew Henshaw Credit: News Corp Australia CreditorWatch's latest insolvency data shows tax cuts and interest-rate relief is slowly passing through to businesses' bottom line. CreditorWatch's May data shows an easing in two key measures of business stress, insolvencies and B2B payment defaults, suggesting the July 2024 tax cuts, recent interest-rate reductions, slower inflation and fiscal support measures are beginning to alleviate some pressures on Australian businesses. CreditorWatch chief executive Patrick Coghlan said the May data on defaults and insolvencies was encouraging but some sectors remained under pressure. 'This levelling off of insolvencies has been long awaited and is very welcome but we need to remember that several industries still face significant challenges, particularly those exposed to discretionary spending,' he said. 'Post-Covid, we've seen inflation hit 30-year highs. 'Those rapid price increases across the economy don't reverse when the inflation rate comes down again – the higher prices are locked in and remain as permanent pressures for businesses.'
Perth Now
14-07-2025
- Business
- Perth Now
Iconic retailer shuts flagship stores
Iconic fashion retailer Country Road will close down stores across Sydney as slowing sales force its South African owners to scale back its retail front. The business's landmark store in central Sydney's Queen Street Mall will be shut down as the company looks to lower costs. It will also close its sister brand Trenery in Sydney's affluent Mosman, while its Pitt Street Mall store will close in 2028 when the lease expires. Country Road's South African owners Woolworths previously announced weak sales coming from the Australian brand. Sales plummeted by 6.2 per cent in the first half of the 2024-25 financial year and a further 8 per cent in the 26 weeks to December 29 as operating profits dropped 71.7 per cent to just $14.2m. Country Road will close three of its Sydney stores. NewsWire / Andrew Henshaw Credit: News Corp Australia Country Road was founded in 1974, starting out as a smart-casual men's, women's and children's clothing store while also dabbling in homewares and accessories. It grew out into Australia's first lifestyle brand known for high-quality apparel, accessories and homewares and became the first major Australian brand to move into the US. In 2014, Country Road and Trenery were bought by South African brand Woolworths. Country Road's recent falls are in line with the collapse of dozens of retailers. Retail giant Mosaic Brands – owner of Millers, Rivers, Crossroads, Katies, Noni B and Autograph – collapsed into voluntary administration in October 2024. In a notice to creditors delivered in February, Mosaic's total debt was tallied at more than $318m. Iconic retailer Jeanswest also said it was hit by a 'perfect storm' of factors as it closed its stores in March, with 600 workers out of a job. Country Road is just one of many retailers struggling with cost-of-living pressures. NewsWire / Andrew Henshaw Credit: News Corp Australia CreditorWatch's latest insolvency data shows tax cuts and interest-rate relief is slowly passing through to businesses' bottom line. CreditorWatch's May data shows an easing in two key measures of business stress, insolvencies and B2B payment defaults, suggesting the July 2024 tax cuts, recent interest-rate reductions, slower inflation and fiscal support measures are beginning to alleviate some pressures on Australian businesses. CreditorWatch chief executive Patrick Coghlan said the May data on defaults and insolvencies was encouraging but some sectors remained under pressure. 'This levelling off of insolvencies has been long awaited and is very welcome but we need to remember that several industries still face significant challenges, particularly those exposed to discretionary spending,' he said. 'Post-Covid, we've seen inflation hit 30-year highs. 'Those rapid price increases across the economy don't reverse when the inflation rate comes down again – the higher prices are locked in and remain as permanent pressures for businesses.'
Perth Now
25-06-2025
- Business
- Perth Now
Major tax change impacting millions
Millions of Aussie small businesses are being warned to pay their tax bills on time or they will be slugged with a fee, compounding daily. In changes to taxation laws coming into effect on July 1, interest charged by the Australian Taxation Office (ATO), which is set at 11.17 per cent compounded daily, will no longer be tax deductible. This means businesses who previously didn't have to worry about the debt due to it being tax deductible in the next financial year, would now have to pay their tax bill plus any interest owed. A change in tax policy could see small businesses needing to pay their tax liabilities sooner. NewsWire / Emma Brasier Credit: News Corp Australia CA ANZ tax expert Susan Franks warns the approximately 2.6m small businesses in Australia this change will substantially increase the real cost of falling behind on tax obligations, particularly for small businesses already operating on tight margins. 'Small businesses currently hold the majority of the ATO's outstanding tax debt, and this change will make that debt even more expensive,' said Ms Franks. 'Previously, small businesses may not have been concerned about accumulating interest on tax debt, as it was deductible at tax time. 'But from 1 July 2025, small businesses could find themselves in a difficult situation and if not managed carefully, interest owed to the ATO could quickly exceed the amount of tax they were originally meant to pay.' The change comes into effect as the tax office tries to recoup the $45bn owed to them by small businesses. It comes as the tax office is looking get back more than $45bn in tax revenue. NewsWire / Nicholas Eagar Credit: NewsWire ATO assistant commissioner Anita Challen reminded taxpayers to pay in full and on time to avoid general interest charges accruing on overdue debts. 'These changes will mean it will cost more to carry a tax debt and, while taxpayers won't feel this change until next tax time, ATO general interest charge is currently charged at 11.17 per cent and compounds daily making it so important to get on top of your tax obligations,' Ms Challen said. 'If you have a tax debt you've been putting off paying – now is the time to pay.' The changes to the tax law comes as separate data sent from CreditorWatch shows more than 30,000 businesses across Australia owe the tax office at least $100,000. Since April 2022, the ATO has disclosed business tax debts to credit reporting bureaus, such as CreditorWatch, if they owe more than $100,000 and the business has not responded to outreach in two months. The number of businesses CreditorWatch says owes the tax office at least $100,000. Supplied Credit: Supplied CreditorWatch says this is not a full list of businesses that owe more than $100,000 but worryingly 15,635 individuals or sole traders currently owe the tax office at least six figures. The ATO urges any businesses that are unable to pay their tax liabilities to get in contact with the taxation office. 'If you cannot pay on time and in full, you should also discuss your financial position with your accountant or finance provider to understand if there are alternative methods of funding payment of tax debts that might have a lower interest rate,' Ms Challen said. ' If you are considering obtaining third party financing to pay your tax debt, you should discuss the tax implications with your registered tax agent or adviser.'
