Sage Painting liquidated with $2m debt, but owner keeps trading after restructure

The Advertiser

03-07-2025

FIFTH-generation painter Sean Hersee's well-known Hunter business, Sage Painting, has been placed in liquidation with debts of more than $2 million, but Mr Hersee will continue trading under a new company known as Sage Painting Port Stephens after a business restructuring.
Sage Painting ceased trading in March, and Queensland-based Matthew Bookless of SV Partners is overseeing the liquidation.
Mr Hersee was the sole director of the residential and commercial painting and epoxy flooring business, which operated from leased premises in Taylors Beach, Port Stephens.
He told the Newcastle Herald this week that several external factors led to a decision to restructure the business initially before it was ultimately placed in liquidation.
These included "builders going into administration, prolonged bad weather, a downturn in the construction industry and not fully recovering from the effects of Covid".
Mr Hersee said while the process was incomplete, "all staff entitlements and suppliers are getting paid".
"Additionally, expanding the business into extra services placed a heavy strain on our core business, which had been successful for 12 years prior," he said.
"Once we realised recovery would be difficult, and fulfilling my director's duties, we sought professional advice.
"With the help of a restructuring practitioner, we have legally downsized the business to ensure sustainability and quality. We have chosen to refocus on our core strengths: residential and commercial painting."
According to a statutory report filed with the Australian Securities and Investments Commission (ASIC) by the liquidator, another company run by Mr Hersee, known as Sage Painting Port Stephens, purchased Sage Painting's business, intellectual property, plant and equipment before it was placed in liquidation.
"The sale proceeds were paid to the company's bank account prior to my appointment," the liquidator's report reads.
"I will conduct an assessment of the commerciality of this sale. Should the sale be considered uncommercial, I will recover a sufficient further amount from the purchaser or seek to void the transaction."
According to the liquidator's report, Sage Painting owes $2.1 million, including $1.9 million to unsecured creditors, of which $1.186 million is owed to the Australian Taxation Office (ATO).
It's estimated that employees are owed about $136,000 in superannuation and annual leave.
The company had three bank accounts with ANZ, but no money was in them when the liquidator was appointed.
About two years before the company was placed in liquidation, a restructuring expert was engaged to assess the business. An agreement was made to sell Sage Painting's assets to Sage Painting Port Stephens.
According to a March 2023 report by the restructuring practitioner, Mr Hersee sold a property and paid $200,000 to Sage Painting, which had almost $1 million in debts.
The $200,000 covered the restructuring practitioner's fee of almost $20,000, and the rest was split between creditors, which resulted in a return of about 18 cents on the dollar.
"The business ceased trading on 4 March 2025 and was sold to a related party, Sage Painting Port Stephens Pty Ltd," the liquidator's report reads.
"My investigations in the liquidation will focus on assessing the sale to ensure it was commercial. The company's director, Sean Hersee, advised me the reason for the company's failure was due to insufficient cash flow, poor scaling of the business and external market pressures. I will conduct independent investigations into the cause of the company's insolvency."
Mr Hersee said since the restructuring, the business was in a strong position and delivering "outstanding work to our customers".
"As a father, my focus is to set an example for my children - that challenges in life and business are inevitable, but it's how you respond, learn, and rebuild that defines your path forward," he said.
FIFTH-generation painter Sean Hersee's well-known Hunter business, Sage Painting, has been placed in liquidation with debts of more than $2 million, but Mr Hersee will continue trading under a new company known as Sage Painting Port Stephens after a business restructuring.
Sage Painting ceased trading in March, and Queensland-based Matthew Bookless of SV Partners is overseeing the liquidation.
Mr Hersee was the sole director of the residential and commercial painting and epoxy flooring business, which operated from leased premises in Taylors Beach, Port Stephens.
He told the Newcastle Herald this week that several external factors led to a decision to restructure the business initially before it was ultimately placed in liquidation.
These included "builders going into administration, prolonged bad weather, a downturn in the construction industry and not fully recovering from the effects of Covid".
Mr Hersee said while the process was incomplete, "all staff entitlements and suppliers are getting paid".
"Additionally, expanding the business into extra services placed a heavy strain on our core business, which had been successful for 12 years prior," he said.
"Once we realised recovery would be difficult, and fulfilling my director's duties, we sought professional advice.
"With the help of a restructuring practitioner, we have legally downsized the business to ensure sustainability and quality. We have chosen to refocus on our core strengths: residential and commercial painting."
According to a statutory report filed with the Australian Securities and Investments Commission (ASIC) by the liquidator, another company run by Mr Hersee, known as Sage Painting Port Stephens, purchased Sage Painting's business, intellectual property, plant and equipment before it was placed in liquidation.
"The sale proceeds were paid to the company's bank account prior to my appointment," the liquidator's report reads.
"I will conduct an assessment of the commerciality of this sale. Should the sale be considered uncommercial, I will recover a sufficient further amount from the purchaser or seek to void the transaction."
According to the liquidator's report, Sage Painting owes $2.1 million, including $1.9 million to unsecured creditors, of which $1.186 million is owed to the Australian Taxation Office (ATO).
It's estimated that employees are owed about $136,000 in superannuation and annual leave.
The company had three bank accounts with ANZ, but no money was in them when the liquidator was appointed.
About two years before the company was placed in liquidation, a restructuring expert was engaged to assess the business. An agreement was made to sell Sage Painting's assets to Sage Painting Port Stephens.
According to a March 2023 report by the restructuring practitioner, Mr Hersee sold a property and paid $200,000 to Sage Painting, which had almost $1 million in debts.
The $200,000 covered the restructuring practitioner's fee of almost $20,000, and the rest was split between creditors, which resulted in a return of about 18 cents on the dollar.
"The business ceased trading on 4 March 2025 and was sold to a related party, Sage Painting Port Stephens Pty Ltd," the liquidator's report reads.
"My investigations in the liquidation will focus on assessing the sale to ensure it was commercial. The company's director, Sean Hersee, advised me the reason for the company's failure was due to insufficient cash flow, poor scaling of the business and external market pressures. I will conduct independent investigations into the cause of the company's insolvency."
Mr Hersee said since the restructuring, the business was in a strong position and delivering "outstanding work to our customers".
"As a father, my focus is to set an example for my children - that challenges in life and business are inevitable, but it's how you respond, learn, and rebuild that defines your path forward," he said.
FIFTH-generation painter Sean Hersee's well-known Hunter business, Sage Painting, has been placed in liquidation with debts of more than $2 million, but Mr Hersee will continue trading under a new company known as Sage Painting Port Stephens after a business restructuring.
Sage Painting ceased trading in March, and Queensland-based Matthew Bookless of SV Partners is overseeing the liquidation.
Mr Hersee was the sole director of the residential and commercial painting and epoxy flooring business, which operated from leased premises in Taylors Beach, Port Stephens.
He told the Newcastle Herald this week that several external factors led to a decision to restructure the business initially before it was ultimately placed in liquidation.
These included "builders going into administration, prolonged bad weather, a downturn in the construction industry and not fully recovering from the effects of Covid".
Mr Hersee said while the process was incomplete, "all staff entitlements and suppliers are getting paid".
"Additionally, expanding the business into extra services placed a heavy strain on our core business, which had been successful for 12 years prior," he said.
"Once we realised recovery would be difficult, and fulfilling my director's duties, we sought professional advice.
"With the help of a restructuring practitioner, we have legally downsized the business to ensure sustainability and quality. We have chosen to refocus on our core strengths: residential and commercial painting."
According to a statutory report filed with the Australian Securities and Investments Commission (ASIC) by the liquidator, another company run by Mr Hersee, known as Sage Painting Port Stephens, purchased Sage Painting's business, intellectual property, plant and equipment before it was placed in liquidation.
"The sale proceeds were paid to the company's bank account prior to my appointment," the liquidator's report reads.
"I will conduct an assessment of the commerciality of this sale. Should the sale be considered uncommercial, I will recover a sufficient further amount from the purchaser or seek to void the transaction."
According to the liquidator's report, Sage Painting owes $2.1 million, including $1.9 million to unsecured creditors, of which $1.186 million is owed to the Australian Taxation Office (ATO).
It's estimated that employees are owed about $136,000 in superannuation and annual leave.
The company had three bank accounts with ANZ, but no money was in them when the liquidator was appointed.
About two years before the company was placed in liquidation, a restructuring expert was engaged to assess the business. An agreement was made to sell Sage Painting's assets to Sage Painting Port Stephens.
According to a March 2023 report by the restructuring practitioner, Mr Hersee sold a property and paid $200,000 to Sage Painting, which had almost $1 million in debts.
The $200,000 covered the restructuring practitioner's fee of almost $20,000, and the rest was split between creditors, which resulted in a return of about 18 cents on the dollar.
"The business ceased trading on 4 March 2025 and was sold to a related party, Sage Painting Port Stephens Pty Ltd," the liquidator's report reads.
"My investigations in the liquidation will focus on assessing the sale to ensure it was commercial. The company's director, Sean Hersee, advised me the reason for the company's failure was due to insufficient cash flow, poor scaling of the business and external market pressures. I will conduct independent investigations into the cause of the company's insolvency."
Mr Hersee said since the restructuring, the business was in a strong position and delivering "outstanding work to our customers".
"As a father, my focus is to set an example for my children - that challenges in life and business are inevitable, but it's how you respond, learn, and rebuild that defines your path forward," he said.
FIFTH-generation painter Sean Hersee's well-known Hunter business, Sage Painting, has been placed in liquidation with debts of more than $2 million, but Mr Hersee will continue trading under a new company known as Sage Painting Port Stephens after a business restructuring.
Sage Painting ceased trading in March, and Queensland-based Matthew Bookless of SV Partners is overseeing the liquidation.
Mr Hersee was the sole director of the residential and commercial painting and epoxy flooring business, which operated from leased premises in Taylors Beach, Port Stephens.
He told the Newcastle Herald this week that several external factors led to a decision to restructure the business initially before it was ultimately placed in liquidation.
These included "builders going into administration, prolonged bad weather, a downturn in the construction industry and not fully recovering from the effects of Covid".
Mr Hersee said while the process was incomplete, "all staff entitlements and suppliers are getting paid".
"Additionally, expanding the business into extra services placed a heavy strain on our core business, which had been successful for 12 years prior," he said.
"Once we realised recovery would be difficult, and fulfilling my director's duties, we sought professional advice.
"With the help of a restructuring practitioner, we have legally downsized the business to ensure sustainability and quality. We have chosen to refocus on our core strengths: residential and commercial painting."
According to a statutory report filed with the Australian Securities and Investments Commission (ASIC) by the liquidator, another company run by Mr Hersee, known as Sage Painting Port Stephens, purchased Sage Painting's business, intellectual property, plant and equipment before it was placed in liquidation.
"The sale proceeds were paid to the company's bank account prior to my appointment," the liquidator's report reads.
"I will conduct an assessment of the commerciality of this sale. Should the sale be considered uncommercial, I will recover a sufficient further amount from the purchaser or seek to void the transaction."
According to the liquidator's report, Sage Painting owes $2.1 million, including $1.9 million to unsecured creditors, of which $1.186 million is owed to the Australian Taxation Office (ATO).
It's estimated that employees are owed about $136,000 in superannuation and annual leave.
The company had three bank accounts with ANZ, but no money was in them when the liquidator was appointed.
About two years before the company was placed in liquidation, a restructuring expert was engaged to assess the business. An agreement was made to sell Sage Painting's assets to Sage Painting Port Stephens.
According to a March 2023 report by the restructuring practitioner, Mr Hersee sold a property and paid $200,000 to Sage Painting, which had almost $1 million in debts.
The $200,000 covered the restructuring practitioner's fee of almost $20,000, and the rest was split between creditors, which resulted in a return of about 18 cents on the dollar.
"The business ceased trading on 4 March 2025 and was sold to a related party, Sage Painting Port Stephens Pty Ltd," the liquidator's report reads.
"My investigations in the liquidation will focus on assessing the sale to ensure it was commercial. The company's director, Sean Hersee, advised me the reason for the company's failure was due to insufficient cash flow, poor scaling of the business and external market pressures. I will conduct independent investigations into the cause of the company's insolvency."
Mr Hersee said since the restructuring, the business was in a strong position and delivering "outstanding work to our customers".
"As a father, my focus is to set an example for my children - that challenges in life and business are inevitable, but it's how you respond, learn, and rebuild that defines your path forward," he said.