List every unfulfilled order and deposit before announcing closure. Customers need accurate information, and the money’s treatment requires proper review.
Corporate Recovery Partners
01 / 06
Customer deposits remain tied to unfinished orders
A furniture maker plans to close its company after losing its workshop. Several customers have paid deposits for unfinished tables, and some materials have already been purchased. The owner wants to refund the customers who complain first. Before paying or transferring orders, the company needs a complete picture of its commitments and financial position.
List the customer, amount received, work completed, materials held and remaining cost. Attach order terms, invoices and correspondence. Identify disputed cancellations and any goods owned by a customer.
Reconcile the total deposits to the accounts. Money received months ago may already have funded operations, so the register should distinguish obligations from cash still available.
Ask whether this is a solvent closure, an agreed transfer of work or an insolvency process. Obtain advice on consumer, contractual and any trust obligations relevant to the deposits.
If a liquidator is appointed, ASIC explains that the practitioner controls the company’s affairs. Refer decisions about refunds, assets and creditor claims through that process rather than continuing to manage them personally.
Do not guarantee completion by another workshop without an accepted arrangement, capacity and a clear treatment of existing payments. Check whether customer consent and new contracts are required.
If refunds are proposed before appointment, obtain advice on the company’s position and payment priorities. The loudest complaint should not become the sole basis for allocating limited funds.
Give customers a factual status of their order, the responsible contact and the process for supplying claim documents. Preserve the same information for the adviser or practitioner.
Separate what is confirmed from what remains under review. Accurate communication may not provide the outcome customers hoped for, but it prevents further decisions based on an unsupported delivery or refund promise.
