Nelson Mail

Call centre wound up owing $2m

- CHLOE WINTER

Troubled Wellington call centre CallActive is being wound up, leaving creditors including former staff and Wellington ratepayers more than $2.1 million out of pocket.

Despite a plan to create 2000 jobs in the capital when it arrived in 2013, CallActive was put into liquidatio­n in November 2015 due to unpaid tax.

At about the same time, its Australian-based directors, Rick Allan and Phillip Allan, were declared bankrupt.

In the final liquidator­s’ report, Colin Owens and David Vance of Deloitte said there were insufficie­nt funds to pay creditors of the company.

This means there is no money to pay back the Wellington City Council, which invested $300,000 to help the firm set up its call centre in the capital, or former Call Active staff who are owed ‘‘substantia­l amounts [of] unpaid wages and holiday pay’’, or any other creditors.

In June, an investigat­ion into the financial records prompted a call for some people associated with the company to pay up.

By December 15, settlement­s had been reached with the individual­s.

However, there were no other avenues left to recover money, meaning the company would be wound up owing in excess of $2.112m.

‘‘No claims were submitted by employees and therefore we believe the actual loss to creditors would be significan­tly greater,’’ the report said.

Owens and Vance are now seeking to remove CallActive from the Companies Office register.

About 60 CallActive workers at the Willeston St office in Wellington were made redundant weeks before Christmas two years ago.

This came after its Australian branch folded a month earlier.

Liquidator­s froze the company’s bank account with ANZ, which held a small amount of money.

At the time of the company’s incorporat­ion, the Wellington City Council loaned it $300,000, with the expectatio­n the company would create up to 2000 jobs in the capital.

In November 2015, council chief executive Kevin Lavery said the council would have to ‘‘explore options for the possibilit­y of recovering any of the funds’’ granted through the Economic Initiative­s Developmen­t Fund Panel.

The funds were originally provided as a loan to help set up the company’s Wellington operations, he said.

CallActive was a family-owned business establishe­d in 1975 in Melbourne.

 ?? PHOTO: ROSS GIBLIN/STUFF ?? About 60 CallActive workers at the Willeston St office in Wellington were made redundant just before Christmas 2015.
PHOTO: ROSS GIBLIN/STUFF About 60 CallActive workers at the Willeston St office in Wellington were made redundant just before Christmas 2015.

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