New venture but ex-staff owed $85k
THE founder of a marketing company that went bust owing staff tens of thousands of dollars in superannuation has launched a new business selling wheat packs and “body custard”.
Kelsie Smith placed Vivid Obsession Group, which traded as VO Group, into liquidation in 2018. It had debts of more than $781,000, including $85,329 in wages and superannuation.
Mr Smith blamed an increasing number of clients failing to pay bills and “staffing issues” for the collapse.
It can now be revealed that Mr Smith in November 2019 launched DunnSmith Organics selling products including magnesium body custard for $55 a 250g jar through his company KLS Capital Group Pty Ltd.
Mr Smith is the sole director and shareholder of KLS Capital Group.
Two former VOG employees say they are outraged that Mr Smith is running a new business while refusing to pay outstanding superannuation.
“He can afford to launch a new business but can’t pay superannuation,” a former employee said.
Mr Smith did not answer multiple calls and messages.
In February 2018, months before the VOG collapse, the Bulletin asked Mr Smith for the best business advice he had received.
“The best advice I have received is also an incredibly simple piece of advice: accept your mistakes without regret and turn them into lessons to help your future self. I try not to let a bad life situation or ‘failure’ get me down. My passion and drive comes from my past learnings and the opportunities I have been given to grow and change. Business has to be adaptable, and the more flexible you are with your own mentality and forgiving your own mistakes, the easier it is to move on and be successful,” he said.
The DunnSmith Organics website says the company is based in Brisbane and “was born from the marriage of two kindred souls”.
“Dunnsmith Organics introduces small batch, artisanal lifestyle products designed to seamlessly integrate into your everyday life,” the website reads.
“Whether it’s the ultimate spa-like relaxation, the vibrant lift of fresh energy, or the bliss of feeling your stress melt away, let our carefully curated selection of products help you bring balance and inspiration back into your home.”
VO Group’s clients included Stone Group Lawyers, Affinity Education Group, Bambini Early Childhood Development, Coomera City Centre, Eco Tan, Meriton and Nimble.
In November 2018 the Vivid Obsession Group business was sold to VOG Holdings Ltd, also controlled by Mr Smith, with a balance owing of $12,013 at the state of the liquidation. The balance was later repaid.
VOG Holdings is still registered with the same registered office as DunnSmith Organics.