At a second Creditors Meeting held on Monday this week (11 August 2025), disability and home care support services provider Annecto was officially placed into liquidation after 70 years in operation.
A 93-page Administrator's Report sent to creditors ahead of the meeting shows Annecto "was likely insolvent" on 22 May 2025 "and potentially earlier" based on McGrathNicol's preliminary analysis. It was in June when the Melbourne-based Not For Profit announced plans to cease services by the end of July.
McGrathNicol is still determining the exact date Annecto became insolvent and the next steps. However, the report notes the "significant costs" of any subsequent proceedings related to insolvent trading.
The provider's more than 1,000 staff are expected to receive between 21.4 cents in the dollar and 54.9 cents in the dollar. Under the Fair Entitlements Guarantee, the Government will pay most of the outstanding entitlements to workers if Annecto goes into liquidation. Unsecured creditors are not expected to receive any return.
Annecto Chair Colleen Furnaletto OAM (pictured right) said at the time of closure, the "difficult decision" was made considering "service model shifts" in the aged care and disability sectors and the "financial challenges" facing the organisation.