Australian Salesforce partner Cloud Industry Group has closed its doors and called in the liquidators after almost six years in operation.
Founder and CEO Martin Schwall told staff via email that the company would cease operations on 27 February, beginning the formal insolvency process two weeks later.
According to documents filed with the Australian Securities and Investments Commission, $7,966 is so far owed to former employees and alongside super guarantee charges.
Meanwhile, $362,512 has been claimed by creditors, of which more than half is owed to Schwall himself, at $170,614.
Frank Recruitment is the second-biggest creditor at $57,151, followed by the Office of State Revenue for Victoria which is due $25,849
More than $45,000 is owed collectively to three overseas technology firms, two in India and one in the UK, while $14,922 is owed to Corporate Traveller.
Founded in 2014, CIG was a platinum Salesforce partner that had bases in the Gold Coast, Melbourne and Singapore, plus a development team in Bangkok, Thailand.
It counted roughly 20 employees in Australia, six in Singapore and up to 70 in Thailand, all of whom are understood to have been locked out of their email and IT systems upon the announcement of the business’ closure.
In emails seen by ARN, Schwall told staff the company was “in a financial struggle” and would cease trading “in the coming days”, although it is understood employees were unable to access their accounts within a matter of minutes.
“We have worked closely together over the past few months and tried to the best of our abilities to change our company, to deliver higher quality to our customers, to work more efficiently together and become this great business, we once were and so badly wanted to get back to,” he continued.
He told staff the company was “unable to convince any other party of the viability of the business”, but added that he had managed to secure a number of interviews for staff, plus visa sponsorship for those from overseas.
However, sources familiar with the matter indicate that staff have been unable to reach Schwall since 27 February.
Following Schwall’s message, CIG’s HR manager emailed staffs’ personal accounts saying the company was “unable to process wages and any entitlements”. ARN understands these wages amounted to the value of approximately two weeks' worth of work.
The email also told staff it would be appointing a liquidator in “the coming days” and their employment would be terminated at that point, while recommending employees seek financial support under the Fair Entitlements Guarantee (FEG).
However, the appointment of a liquidator did not take place until 11 March. Former CIG employees in Australia have now received letters from Sydney-based liquidator The Insolvency Experts, which also flagged the government’s FEG.
Schwall was unavailable for comment when contacted by ARN.
Salesforce was also unavailable to comment on what its partner’s closure would mean for any ongoing projects and what measures it would be putting in place.
CIG's closure comes just weeks after another Salesforce partner, Arxxus Technology Partners, also shut its doors and filed for liquidation.