Five companies linked to one-time Fast Eddy’s owner Richard Trainer have been put into voluntary administration owing about $500,000 to about 40 creditors.
Ken Wallman has been appointed as the administrator of Pioneer Village Restaurant, Margaret River Holidays Suites Pty Ltd, Vasse River Resort Pty Ltd, Mandurah Resorts Pty Ltd, and Global Food Services.
Mr Wallman said creditors of those businesses could soon be presented with a deed of company arrangement.
Two other businesses, Summer Moon Enterprises Pty Ltd and Burbridge Property Group Pty Ltd, are understood to be facing winding-up actions led by the Australian Tax Office.
Australian Securities and Investments Commission records show Mr Trainer to be the sole director, secretary and shareholder of those companies.
According to the ABR Credit Gazette, Mr Trainer and businesses linked to him, including those in administration and facing winding-up actions, have been served with writs totalling more than $500,000 since last September.
Another business Mr Trainer owns, Zorros Restaurants Pty Ltd, is understood to have closed. That business had taken over the sites once occupied by the Lonestar Steakhouse businesses.
It is believed the long wait for the funds from the sale of the three Fast Eddy’s restaurants Mr Trainer bought in 2003 and sold in 2004 is at the heart of the problems his business is facing.
Mr Wallman said the five businesses he had been appointed administrator of were all non-trading entities, having sold their operating businesses to other companies.
“He [Richard Trainer] appointed me so he could put a DOCA to creditors. If the business had gone into liquidation it would have been harder to put a DOCA forward,” he said.
Mr Wallman said four of the businesses only had one creditor – the Australian Tax Office. He said Global Food Services had about 40 creditors.
Mr Wallman said GFS was the business that owned the Fast Eddy’s cafes at Morley, Carousel and Bunbury.
GFS bought the three Fast Eddy’s outlets from the liquidator of the all-night fast-food chain in 2003. At the time media reports estimated the purchase to be worth about $1 million.
Mr Wallman said GFS had provided vendor finance to the company that had bought the three Fast Eddy’s outlets but was yet to receive payment.
“The outlets are due to be paid for in April,” he said.
However, Mr Wallman declined to name whoever had bought the Fast Eddy’s outlets.
WA Business News contacted Mr Trainer, but he declined to comment.
