Liquidators appointed to LEGgroup

More than a month after the theatre company behind a recent Little Shop of Horrors production declared it was closing, liquidators have been appointed to the business but creditors are unlikely to receive a cent.

Simon Coad from Ticcidew Insolvency was appointed as liquidator of LEGgroup, which trades as theatre company Entertaind and the music school Australian School of Theatre, yesterday.

The liquidation has been a long time coming, with the company announcing on Facebook that its last day of trading was March 10.  

Mr Coad said he anticipated about $250,000 was owed to creditors, including $100,000 payable to 26 employees.

He said it was unlikely creditors would receive the money they were owed.

According to Mr Coad, the company’s physical assets mainly consist of the music school’s instruments.

“I am in the process of obtaining valuations on these,” Mr Coad said.

“I am not anticipating at this stage that there will be any financial return to creditors.”

Business News understands LEGgroup director Scott-Leonard Landers approached others to act as liquidator but they refused to take on the matter.

Mr Coad said he got involved because without the company going into liquidation, there was no opportunity for the group’s employees to seek assistance under the federal government’s Fair Entitlements Guarantee Scheme.

The Media Entertainment and Arts Alliance expressed concern for the artists who performed in the Little Shop of Horrors and those working at the Australian School of Theatre, as their employment status was unknown. 

A spokesperson for the union encouraged the liquidator to engage with the MEAA on behalf of staff and employees. 

While LEGgroup has several business names listed on the Australian Business Register, Mr Coad said most of these were not operating and had not been used at the date of liquidation.

He said he had been advised the business name BAKKBONE Australia, used to run a telecommunications company, was sold a month ago. 

LEGgroup's most recent business name, Get To The Show, was registered on February 11, 2022. 

The liquidation comes after Entertaind’s production of Little Shop of Horrors in November.

In social media posts, Entertaind admits its performances of Little Shop of Horrors had lower-than-expected patronage.

It said the final settlement from ticket sales was only slightly more than $9,000.

“Unfortunately, our ambitious effort to smoothly transition from our previously more intimately scaled productions to a venue with the Regal Theatre’s capacity, was not realised,” a social media post read.

“We are working with stakeholders to ensure that our obligations are met at the earliest possible opportunity, but will be suspending our upcoming seasons in the interim.”

According to the MEAA and the artists Business News spoke to, the company organised payment plans to pay staff but later defaulted on them. 

Employees involved in the show have been vocal on social media about their unpaid wages and the treatment of staff on set.