Patients of Supercare Dental and Cosmetics Tuggerah are unlikely to recover funds after the company’s financial collapse, according to the liquidator's report. The report indicates that financial mismanagement and potential legal violations contributed to the company's failure.
The liquidator has received over 330 claims from unsecured creditors, totaling nearly $2.8 million. More than $2.1 million of these claims come from former patients who paid upfront for dental services that were never delivered. The report suggests that the company’s director transferred significant funds to herself and related entities, raising concerns about breaches of legal duties.
The New South Wales Department of Fair Trading has also alerted the liquidator to possible violations of Australian Consumer Law by the director and her husband. The report states, "At this stage, there are insufficient funds to meet the cost of the liquidation and accordingly, it is unlikely that a dividend will be paid in the liquidation to any class of creditors."
Earlier this year, reports surfaced about numerous patients who had paid millions upfront for dental work that remained incomplete at Supercare Dental clinics. Many of these payments were reportedly made using funds from patients' superannuation accounts. Five clinics in New South Wales operated under the Supercare Dental name, with Tuggerah and Kotara placed into voluntary administration in April.
The creditor's report also revealed claims from former employees totaling over $70,000 for unpaid wages and entitlements. Patients have reported difficulties accessing their dental records, complicating their ability to seek further treatment. The full extent of the financial impact on former patients and staff will not be clear until the liquidation of associated companies is completed.
Trish Gyler, a former patient, shared her experience with Supercare Dental. After years of feeling insecure about her teeth, she was drawn to the clinic by advertisements promising affordable dental work through superannuation. Gyler trusted the clinic and withdrew over $56,000 from her superannuation to pay for dental procedures, including implants and veneers. However, after receiving only partial treatment, her appointments were repeatedly canceled, and the business eventually went into administration.
"I felt like an absolute fool. I couldn't believe that I had trusted these people," Gyler said. She described her current state as having "four ugly white fake teeth" and feeling that her dental issues had not improved. Gyler expressed concern about her financial future, stating, "I can't think about retirement … I can't say that I'll be able to afford to not work anymore."
The liquidator's report raised serious concerns about the management of Supercare Dental, particularly regarding director Syma Usman. Investigations revealed that Usman had transferred over $8 million to herself and related entities without proper justification. The liquidator noted that the company had been trading while insolvent since July 1, 2023, and cited poor corporate governance and a lack of financial records.
In a related development, Smile On Group has announced plans to open dental practices at four former Supercare Dental locations. They have purchased dental equipment but clarified that they did not acquire the business entities, patient records, or debts of Supercare Dental. A spokesperson for Smile On Group stated that they would assist former patients on a case-by-case basis but had no obligation to do so.
Gyler has taken it upon herself to raise awareness about the situation, reaching out to government officials and regulatory bodies. She questioned the process that allowed her to withdraw superannuation funds for dental work, stating, "How many people are they doing this to so easily, yet it was supposed to be a very strict guideline?"
As the liquidation process continues, the future remains uncertain for many affected patients.