Storm Financial shut down, 115 jobs lost

The administrators of collapsed financial planning group Storm Financial have closed the company’s 14 offices, putting 115 staff out of a job.

The administrators of collapsed financial planning group Storm Financial have closed the company’s 14 offices, putting 115 staff out of a job.

Administrators Raj Khatri and Ivor Worrell of Worrells Solvency & Forensic Accountants announced the closure yesterday. It is believed the bulk of the job losses – around 60 or 70 staff – were at the company’s headquarters in Townsville.

“The company’s income had reduced very significantly over recent months, resulting in trading losses being incurred at a rate which the company could no longer absorb,” the administrators said in a statement.

Storm collapsed late last week after being unable to repay a loan of around $10 million to the Commonwealth Bank.

The fate of the firm’s 14,500 clients remains unclear.

Storm’s website has also been closed down, with a message posted explaining that company has ceased trading.

“As a result of the company ceasing operations it is not in a position to transact further business for clients, however the administrators hope to be able to introduce alternative financial advisers to clients in the near future.”

A creditors meeting will be held in Brisbane next Tuesday.

Related stories:

• “We’ve lost money too” – Storm Financial founders break silence
• Queensland’s Storm Financial Group under pressure

See also this week’s feature Five lessons from the collapse of Storm Financial