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Iconic homewares retailer Homeart is set to be liquidated, with all 103 stores nationwide set to close and around 550 staff to lose their jobs.
The news comes after Daniel Austin Walley, Phil Carter and Mark Robinson of PPB Advisory <a href="https://www.smartcompany.com.au/finance/cashflow/45441-homeart-collapse-homeware-retailer-up-for-sale-after-being-placed-in-administration">were appointed administrators of Homeart on January 23</a>. Rumours of a possible liquidation had <a href="https://www.smartcompany.com.au/finance/cashflow/46203-homeart-liquidation-fears-grow-with-103-stores-and-550-jobs-on-the-line">circulated among staff in recent days</a>.
SmartCompany understands the only Homeart stores still trading in Victoria are the outlets at Broadmeadows and Northland, with all other stores closing and their staff made redundant as of Wednesday.
Staff were told by store and state managers that administrators PPB Advisory had not found any buyers for the chain and have decided to close all its stores in Australia.
Along with a redundancy letter, employees were given an information sheet from the Australian Securities and Investments Commission about insolvency.
“We advise that your store has ceased to trade and the company no longer requires your services under your contract of employment. Accordingly, your employment is hereby terminated as at the date of this letter,” the redundancy letter said.
“Your payment summary will be forwarded to you at the end of the financial year.”
One of the chain’s Victorian employees, who asked not to be named, told SmartCompany yesterday was her last day with the company.
“Just before the administration our pay was late, which we realise now was probably due to a lack of funds and we were receiving emails telling us to pre-bank as much as we could during the day so that our pay would go through,” the employee says.
“The staff at my store were told all of the stores in Victoria would be gone before Easter, so Broadmeadows and Northland don't have long left,” the employee says.
<a href="https://www.smartcompany.com.au/images/letter-1-2448.jpg" title="Bluewire Media"><img src="https://www.smartcompany.com.au/images/letter-1-2448.jpg" width="600"></a>
<a href="https://www.smartcompany.com.au/images/letter-2-2448.jpg" title="Bluewire Media"><img src="https://www.smartcompany.com.au/images/letter-2-2448.jpg" width="600"></a>
Click to enlarge.
The employee says high shopping centre rents may have contributed to the company’s financial woes.
“There have been lots of complaints about the rent [in my centre] from the GPT Group being too high,” the employee says.  
“Other shops in the centre have vacated like Equip and Rubi Shoes, now Homeart. The Gloria Jeans franchise near us is rumoured that it will be bought back soon because the store isn't performing well, the hairdressers have apparently got plans to leave the centre because the GPT Group put a competitor directly in front of their store.”
In early February, PPB Advisory closed Homeart’s 13 worst performing stores, with Walley at that point still holding out hope the administrators could find a buyer for the chain.
“While this is a very regrettable development, our priority at this time is to reshape Homeart into a sustainable retail business, which ultimately may help to protect the interests of the remaining employees. The closure of these underperforming stores is a necessary step to achieving this,” Walley said at the time.
“The remaining 100 stores will continue to operate on a business-as-usual basis whilst a review of the business continues. PPB Advisory is engaging with a number of potential purchasers to ensure we achieve the best possible outcome for the business.”
The iconic homewares chain was launched as Copperart by Amy Van Roest and her husband Aart in 1978 and its first store was located on Canterbury Road in the eastern Melbourne suburb of Blackburn.
Between 1999 and 2001, the company rebranded as Homeart to indicate it has shifted from selling copper and brass ornaments to a full range of cookware, manchester, electrical goods, toys and fitness products.
Before its collapse, Homeart had total revenues of $61,430,000 according to IbisWorld, with Van Roest continuing to serve as its managing director, and its headquarters having moved to New South Wales.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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All 103 remaining Homeart stores to close, 550 jobs lost

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Ice-cream and hot-dog chain Wendys is facing potential legal action on a new front, after the company allegedly abandoned its headquarters in Adelaide late last year.
Following the <a href="https://www.smartcompany.com.au/finance/43674-global-food-retail-group-scoops-up-wendys-five-million-gmail-passwords-leaked-online-atlassian-s-sales-up-44-to-us-215-million-midday-roundup" target="_blank">acquisition of the company by Global Food Retail Group</a> in September 2014, Wendys moved out of its rented headquarters on Fullarton Road in the southern Adelaide suburb of Fullarton in December. Its operations are currently being run from its ice-cream factory, which is located in the south-eastern Melbourne suburb of Keysborough.
SmartCompany understands the landlord for the Fullerton Road office complex was not told about the move by Wendys in advance. The landlord only found out after being alerted by a news item on Seven News on Saturday 8 November that said the company was considering relocating its head office to Melbourne.
The move came despite Wendys still having just over four years remaining on its lease for the building, which it had used for decades. It has only paid rent and outgoings via a bank guarantee, which is due to expire in the next few months.
<img src="https://www.smartcompany.com.au/images/0/wendys-600.jpeg">
Despite its relocation, Wendys still lists the Fullarton Road offices on the “contact us” page on its website.
The matter is now likely to end up in court, with the landlord and Wendys currently in talks over the matter through solicitors.
A second source connected to the company said Wendys closed its offices in Adelaide over Christmas. While there was an offer to staff to relocate to Melbourne in order to keep their jobs, only a few employees took up the offer.
"The Seven News story was an embarrassing leak and the new Wendys owners hastily moved into damage control. An internal email in the early hours of Sunday morning was sent to their franchisees and staff in an attempt to quell the unrest. The email tried to paint a rosey picture to the network that all was well and promised transparency every step of the way," the source says.
"As a testament to the culture of this organisation they did not even inform their own landlord that they were vacating his property. They paid rent up until December, got rid of all the staff, shut the office and left. The building now sits vacant with over four years outstanding on the lease. The landlord is taking legal action to recover what he is owed."
The news adds to growing concerns about the viability of Wendys franchise stores and the company’s treatment of franchisees under previous owners Navis Capital.
<a href="https://www.smartcompany.com.au/growth/franchising/44996-is-wendys-melting-up-to-116-stores-collapsed-or-taken-over-by-management-in-just-eight-years" target="_blank">As previously reported</a>, 116 Wendys stores have either collapsed or been taken over by management over the past eight years. By late last year, Victorian stores were being advertised with an <a href="https://www.smartcompany.com.au/growth/franchising/43801-wendys-says-it-s-committed-to-its-franchisees-as-victorian-stores-advertised-for-as-little-as-59-000" target="_blank">asking price as low as $59,000</a>.
One Wendys franchisee said the fast food chain <a href="https://www.smartcompany.com.au/growth/franchising/45583-former-wendys-franchisee-claims-she-was-refused-maternity-leave" target="_blank">refused to allow her to take maternity leave</a> after giving birth to her second child. Another claimed Wendys <a href="https://www.smartcompany.com.au/growth/franchising/45268-cold-burns-another-franchisee-comes-forward-claiming-mistreatment-by-wendys" target="_blank">repossessed all his stock, fittings and equipment without paying him any compensation</a> after failing to renegotiate a lease.
Tragically, <a href="https://www.smartcompany.com.au/growth/franchising/45184-a-wendys-franchisee-s-nightmare-from-fast-food-state-representative-to-resignation-divorce-and-death" target="_blank">in at least two cases</a>, the failure of a Wendys franchise <a href="https://www.smh.com.au/small-business/franchising/sundae-bloody-sundae-20100809-11u0x" target="_blank">eventually led to a suicide</a>.
The incidents appear to have taken place between 2006 and 2014, when Wendys was owned by Malaysian private equity firm Navis Capital. But the source says there are still concerns for Wendys franchisees.
"I hold grave fears for those struggling franchisees that still remain. Stores continue to close and nothing of any substance has been done to address the lack of profitability for their franchisees. It continues to be a case of profits before people despite the reassuring overtures of the new regime," the source says.
While not speaking specifically about the case, founding principal of Rotstein Commercial Lawyers, Hamish Rotstein, said in general there are more protections for landlords under commercial properties than for retail leases.
“Usually, there’s a covenant in commercial leases that says a property must be occupied during business hours. If the tenant vacates, they are in breach of their lease,” Rotstein said.
“If they vacate, the landlord can either accept the breach and withstand any losses from leasing it out again, or keep leasing an empty building, which is probably not a good thing for a landlord.”
In such a situation, Rotstein says landlords have the right to mitigate their losses by suing the tenant for the difference between the rental of the old tenant and the new one
“In some cases, landlords have also been known to sue tenants for loss of goodwill – obviously a building that’s empty is not as marketable as one that’s being leased, especially if the tenant was a big-name company,” he said.
A Wendys spokesperson about the matter; the company declined to comment.
“Wendys declines to comment on the specifics of the matter as it forms part of ongoing negotiations,” the spokesperson said.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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Legal battle set to heat up after Wendys abandons Adelaide headquarters

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Parts of Western Sydney are set to be switched over to the National Broadband Network, with small businesses being urged to contact their phone or internet provider as the switchover isn’t automatic.
Around 3,600 premises in Penrith will be switched over on 20 February, with a further 1,200 being cut over on 17 April. On 20 March, 2,600 premises in Blacktown, 3,600 in Homebush and 2,600 in Riverstone will be moved over. Then on 17 April, 6,100 premises in Windsor/Richmond and 2000 in Lidcombe will be cut over.
Businesses and commercial property owners with an emergency lift phone and/or a fire indicator panel need to register their details with the NBN Co before the cutover date by calling 1800 687 626.
Small businesses with an EFTPOS terminal, fax or alarm system need to contact their service provider (for example, the bank that supplies their EFTPOS terminal) to check whether the NBN is compatible with their devices.
Meanwhile, owners of medical alarms and medical alert systems need to register the devices by calling 1800 227 300 or completing the online form at nbnco.com.au/medicalregister.
“We are particularly urging people with special equipment including EFTPOS terminals and medical and security alarms which operate using a landline phone connection to contact their preferred phone company and internet service provider as soon as possible,” NBN Co spokesperson Darren Rudd said.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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NBN switchover date approaches for Western Sydney suburbs

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An Australian startup is hoping to revolutionise the surveying and building industries by using a cloud-based platform to create 3D images from data gathered by drone aircraft. 
Propeller Aviation works by collecting data, from either a third-party UAV (unmanned aerial vehicle) service or through one of the company’s drones and feeding it into its cloud-based platform, called Aerodata. From there the data can either be viewed through the Aeroviewer app or be exported to another app through an API.
The company was cofounded in May this year by drone expert Rory San Miguel and software guru Francis Vierboom.
“Rory helped the UNSW set up a drone society and imported a lot of quadrocopters from China. We worked together on a number of projects… I got involved in late 2013,” Vierboom said.
“With Propeller Aerobotics, we took on a big project working with surveyors and construction companies on 3D modelling. But the problem is not doing that with drones – the problem is making the data coherent and creating a platform for that data.
“The problem we’re addressing is many of those companies do their surveys and give it to you on a USB stick instead of in the cloud…. We can get them to log in and upload the data and then make it available.”
Propeller Aerobotics comes at a time when interest in UAVs is booming.
“There are already around 170 licensed UAV operators in Australia, and we’ve opened them up to surveyors. There was less than 100 [operators] 12 months ago and that number is likely to double again in the next 12 months.
“Using the entire industry means that you can use drones from a local operator at local cost in the surveying industry, instead of flying in specialist operators and having to pay for a hotel room for them.”
According to Vierboom, there’s growing interest internationally in the startup, which is based at the National Innovation Centre in Canberra. It was <a href="https://www.propertyobserver.com.au/https://www.startupsmart.com.au/technology/connecting-flying-robots-to-what-we-do-every-day-drone-developer-wants-to-make-australia-a-little-more-like-the-jetsons/2014081212967" target="_blank">one of 19 finalists in Cisco’s Internet of Things (IoT) Innovation Grand Challenge</a>, and will be among <a href="https://www.propertyobserver.com.au/https://www.startupsmart.com.au/growth/sydney-startups-chosen-to-compete-in-the-global-challenge-festival/2014111213607" target="_blank">the four Australian startups set to participate in the 1776 Challenge Festival in May next year</a>.
“In the Cisco competition, we were look at as an opportunity for an IoT technology that could change the world. Propeller Aerobotics was a great story about how flying robots won’t be toys anymore.
“Just in Australia alone, surveying is worth $4 billion a year. Drones will have a huge impact as well in environmental monitoring and project management.”
This article first appeared on <a href="https://www.startupsmart.com.au/" target="_blank">StartUpSmart</a>.
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Australian startup aiming to revolutionise building and surveying industries with drones

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An additional 6,000 premises in 26 rural and regional Australia localities can now sign up for the national broadband network.
In NSW, towns gaining access to the NBN include <a href="https://www.urban.com.au/property-observer" target="_blank">Boambee</a>, <a href="https://www.urban.com.au/property-observer" target="_blank">Woolgoolga</a>, <a href="https://www.urban.com.au/property-observer" target="_blank">Marshdale</a>, <a href="https://www.urban.com.au/property-observer" target="_blank">Barrington</a>, <a href="https://www.urban.com.au/property-observer" target="_blank">Stratford</a>, <a href="https://www.urban.com.au/property-observer" target="_blank">Wallangarra</a>, <a href="https://www.urban.com.au/property-observer" target="_blank">Tarcutta</a>, <a href="https://www.urban.com.au/property-observer" target="_blank">Gumly Gumly</a>, <a href="https://www.urban.com.au/property-observer" target="_blank">Oura </a>and <a href="https://www.urban.com.au/property-observer" target="_blank">Alfredtown</a>.
South Australian localities gaining access to the broadband network include <a href="https://www.urban.com.au/property-observer" target="_blank">Yankalilla</a>, <a href="https://www.urban.com.au/property-observer" target="_blank">Allendale East</a>, <a href="https://www.urban.com.au/property-observer" target="_blank">Moorak</a>, <a href="https://www.urban.com.au/property-observer" target="_blank">Port MacDonnell</a>, <a href="https://www.urban.com.au/property-observer" target="_blank">Tarpeena</a>, <a href="https://www.urban.com.au/property-observer" target="_blank">Worrolong</a>, <a href="https://www.urban.com.au/property-observer" target="_blank">Yahl</a>, <a href="https://www.urban.com.au/property-observer" target="_blank">Lucindale</a>, and <a href="https://www.urban.com.au/property-observer" target="_blank">Kybybolite</a>.
NBN services are also now available in <a href="https://www.urban.com.au/property-observer" target="_blank">Aspley</a> in Victoria, <a href="https://www.urban.com.au/property-observer" target="_blank">Edgcumbe Beach</a> in Tasmania, as well as the Queensland towns of <a href="https://www.urban.com.au/property-observer" target="_blank">East Greenmount</a>, <a href="https://www.urban.com.au/property-observer" target="_blank">Millmerran</a>, <a href="https://www.urban.com.au/property-observer" target="_blank">Clontarf</a>, <a href="https://www.urban.com.au/property-observer" target="_blank">Nobby</a> and <a href="https://www.urban.com.au/property-observer" target="_blank">Mount Julian</a>.
Small businesses and property owners are being urged to contact their internet service provider or phone company in order to arrange switching their services over to the NBN.
The news comes as Ericsson Australia won a major contract to control the operation of the NBN fixed wireless service and manage the ground systems for the NBN satellite service. As part of the contract, the Swedish telecommunications equipment maker is mandated to subcontract services to local small businesses.
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26 rural and regional communities gain NBN access

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The current tax treatment of investment property losses, through a combination of negative gearing and capital gains tax, has come under fire for putting the financial system at risk, according to the federal government’s Financial System Inquiry interim report.
Currently, <a href="https://www.smartcompany.com.au/finance/investment/34310-should-negative-gearing-be-scrapped-experts-weigh-in" target="_blank">negative gearing</a> means that interest costs and other property expenses are fully tax deductible, while capital gains tax on properties is applied with a 50% discount.
The Financial System Inquiry, headed up by David Murray, states in its interim report that these arrangements “encourage leveraged and speculative investment — particularly in housing”.
“Because of these tax arrangements, owners of residential property have an incentive to repay their mortgage as slowly as possible to maximise the tax deductions they can accrue,” says the report.
“Loans with interest-only periods help to maximise these tax deductions in the early years of a loan, although these loans also give borrowers more flexibility with repayments. The tax system, therefore, encourages individuals to take on more risk, which does have implications for risks to lenders.”
Aside from negative gearing and the asymmetric tax treatment, the report identifies additional tax-related factors that are also distorting the housing market.
“In addition to the more favourable tax treatment, individuals have an extra incentive to put more of their wealth into their primary residence because of the means test for the age pension, which excludes the primary home. This leads to higher allocation of wealth to housing and, for some, an inefficient level of consumption of housing services,” the interim report states.
Current arrangements also mean family homes are a key savings vehicle for many Australians.
“Returns on owner-occupied housing (including imputed rent and capital gains) are exempt from tax, although this is not unusual by international standards. This makes housing a very attractive vehicle for savings,” the report states.
The favourable tax treatment for property investment has created a situation of increasing mortgage indebtedness, which in turn has created risks for the financial system.
“Since the Wallis Inquiry, the increase in households’ mortgage indebtedness has been accompanied by banks allocating a greater proportion of their loan book to mortgages; the share of loans for housing has increased from 47% in 1997 to its current share of 66%,” says the report.
“A large enough disruption to the housing market could have significant implications for household balance sheets, financial stability, economic growth, and the speed of recovery in household spending and broader economic activity following a shock.”
Mark Chapman, head of tax with lobby group Taxpayers Australia, told SmartCompany the report is correct in identifying that tax deductions people claim over the life of a property are greater than the losses they claim at the end.
“For high income earners, it’s an astute way to reduce their tax rate. But 70% of those using negative gearing are not high income earners, and are required to buy an asset to get a tax deduction,” Chapman says.
“It needs to be reformed. From a tax policy perspective, [negative gearing in its current form] makes little sense. In most jurisdictions, offsets for losses on property investments can only be claimed against profits on other properties, or be carried forward against future profits.”
Philip Soos, a research Masters candidate at the School of Management at Deakin University specialising in property tax law, told SmartCompany that since 2001, most investment property rents have not been high enough to cover interest and expenses.
“Around 60% of investor loans are interest only. It’s a big leverage bet on a capital gain – as long as wages are high enough to sustain the rents,” Soos says.
“While the argument is that it encourages new property development, around 96% of all investment property loans by value are spent on existing properties.”
“Abolishing negative gearing would be better than reform, but that’s unlikely, so quarantining it or reforming it so it’s limited to new, rather than existing properties, is probably the best option,” says Soos.
Brian Chant, managing director of Property Asset Planning, told SmartCompany negative gearing has some important benefits when applied to new properties.
“I think it’s very effective when used on brand new property. It allows you to turn over the economy, and when you turn over the economy, you employ people. It allows you to build new homes and new affordable housing,” Chant says.
“It needs to be reviewed and discussed further, but when it’s applied to new homes, it’s brilliant.”
However, Property Tax Specialists' Shukri Barbara told SmartCompany reforming negative gearing too quickly could create its own risks.
“One important issue is the banks, who lend up to 90%, are heavily dependent on negative gearing. If you remove it too quickly, the values will drop and create the risk that people will sell their properties for less than they owe on their mortgages,” he says.
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany</a>.
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Negative gearing could be putting the Australian financial system at risk: Murray inquiry

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The mining boom, and the resulting increase in fly-in fly-out (FIFO) workers, has led to housing shortages across Australia. It’s a problem an innovative new website hopes to solve – by turning spare rooms into cash.
Founded by brothers Daniel and Chris Del Borrello, <a href="https://www.fifohousemate.com.au/" target="_blank">fifohousemate</a> is a new website that aims to connect FIFO workers with spare rooms for hire.
Meanwhile, because FIFO workers are looking for places to stay away from their mining or job sites, fifohousemate is open for property listings across Australia.
Co-founder and director Daniel Del Borrello told StartupSmart the service was inspired by his brother’s experiences in trying to rent out a spare room.
“My brother was looking for a housemate – he has a small two-by-one apartment. It’s a small space, and he doesn’t want to have someone living there permanently and cramping his style,” Del Borrello says.
“He came up with the idea of splitting the rent by having a FIFO worker rent a room. But there’s nowhere specifically where you can find a FIFO worker, so he came to me with the idea for the site.”
Del Borrello says fifohousemate can help alleviate the housing shortage by unlocking new properties that can be rented out.
“It connects rentals with FIFO workers, effectively creating new rooms for them to rent,” he says.
“So, for example, a young family with a spare room is probably not going to look for a full-time housemate. But they might be open to having someone use the room one week out of four.”
While the website has been online for just three weeks, Del Borrello says it has already attracted 10,000 visitors and 350 listings.
Around 80% of its visitors currently come from the traditional mining state of WA, although interest is growing rapidly in the other states.
Victoria has already overtaken Queensland as the state with the second-most visitors. Del Borrello predicts the number of listings will only increase as awareness grows across Australia.
This article first appeared on <a href="https://www.startupsmart.com.au">StartupSmart</a>.
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The new website turning spare bedrooms into FIFO rental gold

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Baked potato franchise Spudbar is having a second bite at expanding beyond its Victorian base, after two stores previously closed in Western Australia.
In its hometown of Melbourne, the baked potato chain has grown to 11 stores since its initial launch in 2000.
This growth had previously led to Spudbar opening two company-owned stores in Western Australia in a bid to expand its brand, with outlets in the Perth suburbs of Cannington and Joondalup.
However, both stores eventually closed, with the first going out of business 18 months ago, and the second closing in January of this year.
Despite the closures, the company is planning to embark on a second round of national expansion.
SmartCompany understands the company is working with a franchisee in Western Australia ahead of a future store opening.
In addition to the Perth-based store, the company <a href="https://www.franchisebusiness.com.au/c/SPUDBAR/opportunities" target="_blank">is also advertising franchise opportunities</a> in Canberra, Hobart, Adelaide, Perth, Darwin, the Gold Coast, Brisbane and Sydney.
According to the advertisements, an investment of between $230,000 and $290,000 will be required to open each store.
The chain is one of a number of rapidly expanding Melbourne-based fast food retailers in Australia, including <a href="https://www.smartcompany.com.au/leadership/profiles/34482-roll-d-gold-how-bao-hoang-delivered-rice-paper-rolls-to-the-masses" target="_blank">Noodle Box</a> and <a href="https://www.smartcompany.com.au/leadership/profiles/34482-roll-d-gold-how-bao-hoang-delivered-rice-paper-rolls-to-the-masses" target="_blank">Roll’d</a>.
However, there are clear risks to the national expansion of a fast food franchise.
Back in 2010, fast food chain <a href="https://www.smartcompany.com.au/growth/17745-20101203-fast-food-franchise-souvlaki-hut-collapses-into-administration--but-buyers-waiting-to-pounce" target="_blank">Souvlaki Hut collapsed into administration</a> just 10 months after being named one of Australia’s fastest growing franchises.
SmartCompany attempted to contact Spudbar, however, no official comment was available prior to publication.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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Melbourne’s Spudbar taking another bite at the Western Australian market

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Home improvement company Gotta Getta Group has paid $20,400 in penalties after being issued with an infringement notice by the consumer watchdog, which alleged the company engaged in misleading advertising.
According to the Australian Competition and Consumer Commission, Gotta Getta Group offered consumers 60 cents per kilowatt hour for energy fed back into the grid if they purchased a solar panel and entered a three-year energy plan with Simply Energy.
The advertisements, which ran on television, the internet and radio in South Australia during 2013, claimed the feed-in credit meant consumers would recoup the cost of their solar panel up to three times faster than if they purchased it from a competitor.
The ads also claimed consumers would not have to spend any money in order to benefit from the offer.
In a statement, the ACCC alleged the Gotta Getta Group advertisements made false or misleading claims and contravened Australian Consumer Law.
“Gotta Getta Group did not take into account the fact that consumers who purchased a solar system from another supplier would receive the benefit of the 9.8 cent minimum retailer payment in addition to the 16 cent South Australian Government feed-in tariff,” said the competition watchdog.
“Gotta Getta Group charged consumers an amount in relation to the 60 cent feed-in tariff offer, by including in the purchase price of its solar systems an amount in respect of a commission payable by Gotta Getta Group to Simply Energy,” said the ACCC.
However, an ACCC spokesperson told SmartCompany infringement notices are not an admission of conduct.
SmartCompany contacted Gotta Getta Group this morning, but did not receive a response prior to publication.
The incident is the latest in a series of investigations into the energy sector by the ACCC.
Last month, the agency instituted proceedings in the Federal Court against Origin Energy, claiming it had made <a href="https://www.smartcompany.com.au/legal/41863-origin-energy-in-hot-water-over-alleged-false-conduct">false or misleading representations to consumers</a>.
In a statement, ACCC Commissioner Sarah Court said complex terms and conditions can make it difficult for consumers to compare offers from competing suppliers.
“Suppliers must ensure that representations made about the benefits of purchasing a solar system are truthful and accurate, so that consumers can make informed purchasing decisions, and suppliers do not gain an unfair advantage over their competitors,” said Court.
Melissa Monks, special counsel at law firm King &amp; Wood Mallesons, toldSmartCompany in February the energy sector was one of the <a href="https://www.smartcompany.com.au/legal/35752-accc-to-crackdown-on-drip-pricing-and-big-businesses-posing-as-small-businesses">ACCC’s key priorities</a> for 2014. 
“We will definitely see litigation in relation to the savings ‘discounts off what?’ concerns, likely in the energy sector given the ACCC has been investigating this concern since at least June last year,” she said.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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ACCC energy sector crackdown continues as solar installer fined $20,400

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Hundreds of electricians are out of work after a major national electrical contracting firm with annual revenues of $350 million collapsed into receivership on Monday. 
At its peak, Pacific Services Group employed 1300 staff nationwide, across 40 active project sites and 14 offices, however the group's headcount fell to around 700 employees by the time of its collapse.
Major projects overseen by Pacific Services Group included works at the Chadstone Shopping Centre and Royal Children’s Hospital in Melbourne, the NBN rollout in Tasmania and the Lotus Glen Correctional Facility in Queensland.
The group, based in North Melbourne with offices across Australia, was created through an initial investment by Wolseley Private Equity in 2006 in a bid to become the nation’s largest electrical, data and communications engineering company.
Between February 2006 and October 2009, Pacific Services Group went on a buying spree, acquiring Elecraft in Victoria, Russell Smith Electrical in Tasmania, Boffa Russo in South Australia, Richard Flanagan &amp; Co in Queensland and RSE Electrical in NSW.
However, the electrical firm soon hit financial hurdles, with <a href="https://www.afr.com/p/opinion/kordamentha_takes_control_of_pacific_lDV8jauszuDjsyWGRvareL">The Australian Financial Review</a> reporting Pacific Services Group had lost a major maintenance contract with retail giant Woolworths.
In July of last year, then-chief executive Peter White announced Pacific Services Group had received a $10 million injection from investors, and had secured a deal to restructure its debt from lenders.
“The recapitalisation will inject fresh money into PSG and restructure the group’s debts in a manner that will significantly strengthen the group’s financial position. You will all see the practical impact of this over the following weeks and months,” White said at the time.
“Thank you all for your support over the past few months; it has been a challenging time for us all. The recapitalisation provides us with a robust platform on which to move forward and to bid for the projects that are in the market. We look forward to continuing to work closely with you on both existing and new opportunities.”
Despite the cash injection, by September, Pacific Services Group announced it had appointed former Tyco Fire Protection Services APAC operations director Jeffrey Bretz as its new chief executive.
However, Bretz was unable to turn the company around, with PPB Advisory partner Craig Crosby appointed as an administrator, while Scott Kershaw, Michael Brereton and Craig Shepherd of KordaMentha were appointed as receivers earlier this week.
The Victorian state secretary of the Electrical Trade Union, Troy Gray, blasted the company’s management in a statement provided to SmartCompany, saying the company’s electricians, who had made millions of dollars for the company, including 200 in Victoria, would be left without an income.
“It's not just 200 workers. It's the families of these 200. They don't have an income. They can't get their entitlements, we're told by the government, for 40 weeks. We call on the government to fast-track that,” Gray said.
“Many of these workers will not get re-employed. The construction industry in Victoria isn't fantastic at the moment and they need those entitlements. The annual leave, banked RDOs, they need to live on, to buy food with.”
In a statement, Crosbie told SmartCompany he was still investigating Pacific Services Group's finances, and would report back to creditors by the end of the month.
"We are mindful of the impact on employees and are working with the Electrical Trades Union, the receivers and managers and PSG management to ensure entitlements are calculated as a matter of urgency," Crosbie says.
“We understand the receivers and managers have ceased to trade the businesses. At this stage it is unlikely that funds will be available to meet unsecured creditor claims. In the event the PSG companies are wound up and there are insufficient funds to pay employees, they will be entitled to lodge a claim under the federal government’s Fair Entitlement Guarantee scheme. The administrators will facilitate this process."
“We have notified the Department of Employment that a Fair Entitlements Guarantee claim is being prepared and we will do everything in our power to secure FEG funding and process employee claims as quickly as possible.”
The collapse follows the administration of another multimillion-dollar electrical contracting business called Global Electrotech in <a href="https://www.smartcompany.com.au/growth/32891-leading-wa-electrical-services-contracting-business-collapses--industry-is-shot">July of last year</a>.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany.</a>
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Andrew Sadauskas

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