Bad deal ends in bankruptcy for mining tyre supplier
Australian mining tyre supplier Global Tyre Management Services has reportedly entered administration. Business news site SmartCompany.com.au shares information from Deloitte Australia regarding the Maroochydore, Queensland-based firm’s fate; Deloitte partner Richard Hughes said the company ceased trading on 4 April. Its assets, including trucks, tyres, forklifts and property, will most likely be sold off, and the company’s staff of less than ten faces redundancy.
But how does a company operating in the mining sector go bust during a boom time? Hughes pinpoints the source of Global Tyre Management Services’ problems to a particular deal, which went sour. “The main factor that brought on the business administration is the guy had a deal with a broker in the US and sent over money for tyres and no tyres came back,” he said. “That has been the downfall of the company in my view, but I am still completing my investigations.”
In addition to supplying industrial and earthmover tyres, the company supplied TBR and 4×4 tyres in both premium and budget brands, and cooperated with local retreaders.