What is next for Claypave as sale nears
THE sale of a century old Ipswich brickworks company which went bust last year is "proceeding well" but it won't carry on its old form under a new owner.
Claypave formally ceased trading on Friday last week and there are hopes a sale will go through by the end of the year.
The business was put into voluntary administration in March last year.
It owed $4.9 million to Commonwealth Bank and $70,000 to trade creditors.
Claypave had accrued liabilities of $2 million in employee entitlements.
Based on current estimates all creditors will be paid with a surplus available for shareholders, according to Worrells liquidator Adam Ward.
"Our sale campaign for the land and other assets of the company is proceeding well," he said.
"We are just going through a due diligence period with the prospective purchaser currently and if the purchaser is satisfied to proceed once (due diligence) is complete a sale will be effected hopefully before the end of 2020.
"Whilst it was hoped the business could be sold to continue as a brickworks there simply was not the interest from the market for this site to allow for a sale under those conditions."
Mr Ward confirmed all former employees, about 70 all up, have been paid all of their priority entitlements.
"(This is) despite not having sold the land as of yet which has been an extremely positive result achieved," he said.
"This was only achievable due to the successful ongoing trading since my appointment in March 2019 with the support of the remaining staff and suppliers."
The retail side of the business is no longer running with the sale of bricks and pavers shut down.
Originally named Rylance Collieries and Brickworks, Claypave began operation in the 1880s, with its refractories plant built at Dinmore in the 1930s.