The liquidator appointed to the company operating a Baldivis cafe has reported to creditors that the business was operating while insolvent for two years before its collapse.
The Brother of Mine cafe opened in March 2017, but just five years later the business was struggling under unpaid debts.
A report by HLB Mann Judd Insolvency WA found that the company operating the cafe business may have been insolvent from July 2022.
The HLB Mann Judd was called in to wind up the company Steel & Co Pty Ltd trading as Brother of Mine and Surf Break Salt Co in August this year.
In a 50-page report to creditors, investigations show the company incurred debts of nearly $2m, including $970,000 owed to the ATO, $355,000 in rent and a $660,000 start-up loan from Prime Projects Construction.
The landlor