JobKeeper end doomed Nexus

The cessation of the Government’s JobKeeper program at the end of Mar was the trigger for the closure of Nexus Holidays, which ceased trading late last month (TD 26 Apr) due to the impacts of the pandemic.

A report from Administrator Jonathon Keenan of BRI Ferrier identifies more than 750 customer creditors, including consumers and travel agents, who are owed a total of $2.1 million in deposits.

Keenan noted that until the company ceased trading it had employed 19 staff, the majority working from home on reduced hours to assist customers in postponing travel packages, arranging credits with suppliers and in some cases issuing refunds.

“The company received financial support from the Australian government while it was available, however once this ceased it was unable to obtain the necessary funding to continue business operations,” he said, leading to BRI Ferrier’s appointment as Liquidators.

“Upon conducting an urgent assessment of the company’s financial position, we determined that the company was unable to continue trading and we have terminated all staff,” he said.

As well as the $2.1 million owing to clients, management accounts indicate an additional $269,000 owed to trade creditors, a $203,000 debt to the Australian Taxation Office and $469,000 in outstanding staff entitlements.

The Administrator once again urged customers to explore if refunds are available via credit card chargebacks or through travel insurance, with the company “unable to deliver on previously booked holiday packages and tours”.

“We are urgently assessing the next steps and potential outcomes for customers, including whether any credit with third party providers is available.”

Keenan also urged creditors with any information to assist in its investigations to contact him as a matter of urgency via nexus@brifnsw.com.au.