Pialligo Estate owes more than $6 million to customers, staff, ATO, suppliers, liquidator RSM Australia Frank Lo Pilato says

More than 200 staff and 170 suppliers could also be out of pocket.

Pialligo Estate owed creditors more than $6 million, RSM Australia partners Frank Lo Pilato and Jonathon Colbran said.

The pair took over on April 8 after Pialligo Estate owner John Russell announced the business was closing.

Mr Lo Pilato said initial investigations identified 500 creditors who were owed money.

This includes 110 wedding customers, more than 200 staff, around 170 suppliers, and the Australian Taxation Office.

"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," 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 operations director John Russell blamed the estates decline on a "domino effect of events", including fires in 2016 and 2017, increased insurance costs, unseasonably wet weather, COVID, staffing issues, lost vintages, supply chain challenges 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 encouraged customers who paid deposits by credit card to immediately discuss their situation with their lender.

"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," he said.

Mr Lo Pilato said employees should be able to access the Fair Entitlements Guarantee scheme.

"[This is] 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.

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He also said liquidators were preparing a brief report to inform creditors about the liquidation process and their rights.

"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.

To contact liquidators RSM Australia:

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