Home care and disability services provider Annecto Incorporated has entered voluntary administration, leaving more than 1,000 employees and 3,000 clients in limbo across Victoria, New South Wales, Queensland, and South Australia.
In June, the Melbourne-based Not For Profit announced plans to cease services by the end of July, with three providers selected by the Department of Health, Disability and Ageing to take on their clients:
- Uniting Care in NSW and the ACT,
- Uniting AgeWell in Victoria, and
- Anglicare Southern Queensland in Queensland.
On Monday (7 July), the Annecto board put the organisation into voluntary administration, citing insolvency or the likelihood of future insolvency, the ABC has reported.
McGrathNicol appointed as administrators
McGrathNicol Partners Matthew Hutton, Melissa Smith, Kathy Sozou and Shane O'Keeffe have been appointed Voluntary Administrators of Annecto.
The restructuring firm has written to staff to inform them that all employees will be made redundant. They stated that if funds are insufficient, wages, entitlements and redundancy payouts will be made on a pro rata basis. If Annecto goes into liquidation, employees may need to apply to the Federal Government’s Fair Entitlements Guarantee (FEG) scheme for payouts.
Matthew told The Weekly SOURCE: “The Administrators’ immediate priority will be to manage the continuation of the planned transition of customers and services.
“We will be working closely with stakeholders including the Annecto leadership team, key Commonwealth Government agencies, and Annecto customers and the service providers to which they will be transitioning. During the transition the Administrators will be focused on maintaining the high standards of safety and care for which Annecto is known.”
