After the sudden passing of her husband while he was overseas, the owner of a well-known local café found herself in an incredibly difficult position, both personally and financially. Her husband had always managed the financial side of the business, including tax obligations. Delays in obtaining the death certificate created serious issues in accessing business accounts and managing day-to-day operations.

The Challenge

During this time, the café fell behind on its ATO obligations. Tax debt grew, cash flow was tight, suppliers demanded upfront payments, and superannuation was owing to staff. 

As she worked through her grief and tried to keep the business running, local media picked up on the financial issues due to the café's prominence in the community. This unwanted public attention added to her distress and put further pressure on her to make quick decisions. She felt exposed and overwhelmed. 

Our Approach

We stepped in as a Director’s Advocate to take the pressure off. We immediately took over communication with the ATO, reviewed the financials, and assessed her options. It became clear the business was still viable but needed time to recover. We also acted as a buffer between her and the media, handling all inquiries and ensuring she could focus on running the business without further public scrutiny.

A Small Business Restructure (SBR) was the right solution. We worked with her accountant and legal advisors to develop a formal restructuring plan that allowed the café to repay a portion of the tax debt over time, with the remaining balance forgiven. This allowed her to keep trading, retain staff, and move forward without the fear of insolvency or losing her livelihood.

Outcome

The ATO accepted the restructure plan. The business continued to trade, and the owner was protected from the ongoing media attention. With a realistic repayment plan in place and her privacy respected, she was able to regain control. 

Today, the café remains open, cash flow has improved, and the owner has peace of mind knowing that her family's business was preserved.

When business and personal tragedy collide, the burden can feel unbearable, especially in the public eye. In this case, advocacy and a Small Business Restructure gave the owner the support she needed to rebuild privately and confidently.