An office furniture manufacturer has been placed in administration this week, owing $5 million to creditors, staff members and the Australian Taxation Office, according to a report from Smart Company.
Sydney-based Desking Systems, which manufactures in Kurnell, New South Wales, blamed the market slowdown for its inability to meet supplier and financial commitments.
Smart Company says the creditors of the business are owed $2.2 million, while employees are owed $400,000.
Desking Systems is reportedly selling its manufacturing equipment and intellectual property to help pay-off the debt.
Desking Systems is the trading name for Ofquest Australia, which runs offices and outlets in Sydney and Melbourne, with dealers in Adelaide, Brisbane and Perth. A Canberra dealer was reportedly being appointed before the company entered administration.
The company makes high quality commercial office furniture which it sells into New Zealand, Singapore, South Africa and the United Kingdom, as well as Australia.
The manufacturer is an advocate of sustainable production, with the business meeting ISO 9002 and ISO14001 certifications, and its products being AFRDI Blue Tick Certified.