ANOTHER FARROW FAILURE
A SECOND Geelong business run by former Pyramid Building Society boss Bill Farrow has collapsed, again owing more than $500,000.
Staff from World Wide Entertainment Production and Sales Pty Ltd, who are missing wages and superannuation, have been told they will only receive 11.5 cents for every dollar they are owed.
Other individuals and companies who are owed money will receive nothing.
Mr Farrow lives in Geelong but is believed to be holidaying in NSW. He could not be contacted for comment.
Liquidators Dye & Co held a meeting of creditors on Monday, just two days after the Geelong Advertiser revealed Mr Farrow’s recent venture, Switch International Nominees Pty Ltd, had collapsed owing $504,498.
In a letter obtained by the Advertiser, creditors of World Wide Entertainment were told Mr Farrow did not have the means to pay back the debts.
“(Mr) Farrow said that if I took steps to enforce the full value of the claim I would find that he did not have the financial capacity to pay,” liquidator V.R. Dye said in the letter.
“He also claimed that if I took steps to prosecute the claim, it would ultimately result in his bankruptcy, assuming the claim was successfully litigated.”
The letter said Mr Farrow offered to pay $104,000 in weekly instalments of $1000.
He had paid back $19,000 when Switch International went into liquidation and payments stopped.
“I understand that (Mr) Farrow had intended that the amount of $1000 per week would be funded out of the income he expected to receive from Switch International Nominees Pty Ltd,” Mr Dye said.
“Switch International Nominees Pty Ltd was wound up by the Supreme Court of Victoria and thereafter ceased to trade. These events resulted in (Mr) Farrow not receiving income and not being able to continue to pay the planned instalments.”
Mr Dye said he put Mr Farrow on notice regarding his default and threatened legal action.
“In response, his spouse, Elizabeth Farrow, offered to pay a further $20,000 in full and final settlement of the claim.
“Mr Farrow continues to maintain, and I believe, that he does not have the financial capacity to pay the claims I have made against him and enforcement action would ultimately result in his bankruptcy.
“In these circumstances there are no good commercial grounds for pursuing the matter.”
Mr Farrow was head of the Pyramid Building Society when it collapsed in 1990 with debts of $2 billion.
He went on to form World Wide Entertainment, acting as director and secretary from 1998 to 2008 before it was sold to mortgage broker Coneco in 2009.
Mr Farrow pocketed a reported $3 million from the sale.
He then returned as a director in 2011 where he remained until the company amassed debts of $504,766 and liquidators were appointed in January 2013.
Switch International Nominees Pty Ltd then bought the company’s assets, namely a catalogue of video footage, for $150,000 and continued producing video content, which was sold to TV stations and airlines overseas.
“(Mr) Farrow said that if I took steps to enforce the full value of the claim I would find that he did not have the financial capacity to pay.”
LIQUIDATOR V. R. DYE