Damian Griffiths cited economic conditions for his personal insolvency
Find out the statement of Worrells Solvency on the bankruptcy of Damian Griffiths below.
On 19 March 2018, Raj Khatri of Worrells Solvency and Forensic Accountants was appointed, via debtor’s petition as trustee of Damian Griffiths’ bankrupt estate.
Damian Griffiths is the entrepreneur behind a range of companies including the national chain Doughnut Time, Fortitude Valley bar and restaurant, Les Bubbles; bar and restaurant Alfred and Constance; Limes Hotel in the Fortitude Valley; and an assortment of other entities.
The formal insolvency appointments of the above entities have driven the need for Griffiths to file for his personal bankruptcy.
Griffiths’ Statement of Affairs lodged with the Australian Financial Security Authority (AFSA) cites his personal insolvency being ‘business-related’ and due to “Economic conditions affecting industry, including competition, credit restrictions, fall in prices or increase in costs”.
The principal creditor on the Statement of Affairs is the Australian Taxation Office (ATO) in the sum of $1million, arising from a Director Penalty Notice issued in respect of unpaid PAYG and superannuation debts of the abovementioned companies.
Other creditors include several loans that were provided by family members in the vicinity of $2million. One of those parties is secured by a third mortgage over two properties in Paris, France. As part of investigations Worrells will be obtaining all the relevant information in respect of Griffiths’ interest in these properties, the mortgages and the loans.
As reported in other media sources, a further family member’s company had recently applied to court for judgment, which was successful, for a payment relating to a partnership venture over the Limes Hotel. This debt is listed as $550,000.
Griffiths also declares personal credit cards totalling approximately $140,000.
The bankrupt estate is in its infancy, with Mr Khatri now calling for creditors to lodge a formal proof of debt via Worrells’ website (www.worrells.net.au).
Khatri, said “He appreciates the profile of this bankrupt estate and thanks creditors and affected parties for their patience”.
The Bankruptcy Act regime requires the first Report to Creditors to be issued within 20 business days of the appointment date.
