A popular West Australian bakery has gone under owing the Australian Taxation Office $2 million, according to reports.
Barretts Bakery, which won over customers with its bread, pastries and cakes, was recently placed under the control of Worrells’ principal Mervyn Kitay.
The administrator was appointed on July 27, a notice published by ASIC revealed.
Watch the latest news and stream for free on 7plus >>
Barretts started as a small operation in 1998 and grew to become a “Perth staple” with branches in Claremont Quarter, East Victoria Park, Mount Hawthorn, Karrinyup, Joondalup and Perth CBD.
Despite speculations about a company-rescuing restructure the baker is now on the brink and owes the ATO $2 million, according to a report in The West Australian.
Kitay told the publication the bill was a legacy debt, with the business’ operations cruelled during COVID.
Kitay said the government’s revenue collection agency had become more aggressive in its action to see non-compliant companies settle their scores, with an increase in director penalty notices that make senior management personally responsible for tax and super obligations.
“If your company does not pay certain liabilities by the due date, we can recover these amounts from you personally as a current or former company director,” the ATO warned previously.
The ATO issued more than 17,000 penalty notices during 2022-23.
A meeting of Barretts’ creditors was set to be held on Tuesday, August 8.
7NEWS.com.au has approached Worrells for comment.
If you’d like to view this content, please adjust your .
To find out more about how we use cookies, please see our Cookie Guide.