Pilbara accommodation business into receivership

Family-owned Tribute Group has been placed in receivership, just two months after winning what appeared to be a company-making contract with BHP Billiton for its accommodation businesses in Newman.

McGrathNicol partners Rob Kirman and Jason Preston were yesterday appointed receivers and managers over a number of entities within Tribute Group, at the request of its directors.

This type of appointment is unusual, as directors of troubled businesses usually appoint an administrator whereas receivers are typically appointed by a secured creditor.

It followed the appointment on Tuesday of John Carrello of BRI Ferrier Western Australia as liquidator to four companies within the Tribute Group – Tribute Labour Hire, Tribute Supermarkets, Tribute Electrical, and Waybeth Holdings.

Tribute was established in 2002 by Wayne and Betty Collinson and its management has included their children, including operations manager Mairead Robertson.

The business received a big boost in mid-July when BHP announced it would close its Kurra Village in Newman, which at its peak housed up to 1,600 fly-in, fly-out workers.

BHP said it planned to use several alternatives, including Tribute’s Kalgan’s Rest and Whaleback Village.

McGrathNicol said Tribute Group comprised a number of businesses and properties including Kalgan’s Rest and Whaleback Village plus a commercial laundry, newsagency and earthmoving business.

Control of the company’s operations will now rest with the receivers, who intend to work with existing management to trade on a business-as-usual basis while undertaking an urgent assessment of each business.

“Customers, employees, key stakeholders and the wider Newman community should be reassured that our appointment will allow the Tribute businesses that are subject to our appointment to continue operating as usual while we work with management and other key stakeholders to stabilise operations and commence an orderly sale campaign,” Mr Kirman said in a statement.

A BHP spokesperson said today it would continue to work with a range of third-party accommodation providers in line with its operational needs, in addition to utilising company-owned facilities.

The other provider it named in July was Capricorn Village, which is part of Craig Mitchell’s Outback Travel Centres business.

Ms Robertson told Business News in July her family was excited to be entering a long-term partnership with BHP.

She said all accommodation providers in Newman had struggled with low occupancy in recent times.

Kalgan’s Rest had 540 accommodation units, while Whaleback Village had 430 units.

“We’ve invested a lot to make these facilities first-class,” Ms Robertson said in July.

The business was established in 2002 when the Collinsons moved to Newman to purchase and develop Whaleback Village, formerly known as Dearlove’s caravan park.

The business expanded in 2004 when it bought Kalgan’s Rest.