From Eagle to possible Phoenix operator, liquidator sheds light on Andrew Donnelly’s businesses

A liquidator is investigating whether former West Coast Eagle Andrew Donnelly and his wife Natasha engaged in illegal phoenixing — when a company is liquidated to avoid paying debts, and then a new company is started to continue trading — over the sale of a business mired in consumer complaints. Scores of Perth customers who paid for patios, carports, garages and sheds and got nothing in return are among unsecured creditors owed almost $1 million by Factory Direct Group. Sydney-based liquidator Rajiv Goyal was appointed last September after a supplier owed money successfully petitioned the Victorian Supreme Court for the company to be wound up. Mr Goyal’s most recent report to creditors contained a big surprise — the business had been sold to another Donnelly company, Shutter Guard Group Pty Ltd, in February 2023. The reported sale price was $1.2 million plus GST. “Based on my preliminary investigations, it appears likely that the company failed to receive adequate consideration for the sale of its business and business assets,” Mr Goyal reported. “My investigations into the sale agreement are ongoing to determine whether the sale was commercial or constitute potential illegal phoenix activity.” The Sunday Times previously exposed Factory Direct’s failure to carry out works. The sorry saga remains under investigation by Consumer Protection. In July 2023, the watchdog took the rare step of urging the public to be wary of Factory Direct, given its shocking record of taking large advance payments and failing to deliver. It received more than 60 complaints between March 22, 2022, and June 29, 2023. Australian Securities and Investments Commission (ASIC) records show that Natasha Donnelly owns 70 per cent of Factory Direct Group, while director Shane Stephen Carlson owns 30 per cent. But in his report, Mr Goyal identified Mr Donnelly as a potential shadow director. The former footballer was a signatory to the company’s bank account and had a signed Power of Attorney over the company which was executed in June last year. Mr Donnelly’s Cottesloe home was also the registered office and principal place of business for Factory Direct. Mr Donnelly is also the sole director and owner of Shutter Guard Group, the buyer of Factory Direct’s business and assets. “Based on my preliminary investigations, it appears that (Factory Direct Group) did not receive any cash from the sale and may not have transferred the agreed liabilities to the purchaser,” the liquidator reported. Under the sale agreement, the $1.2m price could be adjusted by amounts owed to suppliers and customers. “It is clear that these liabilities have not been transferred to (Shutter Guard Group) as part of the agreement and as such, should not be included as an adjustment the purchase price,” Mr Goyal reported. “Additionally, my office has received correspondence and photo evidence confirming that some customers faced defects, including sheds completely falling apart, which were left unrectified. Accordingly, it appears that not all customer contracts have been transferred to Shutter (Guard) as part of the sale agreement.” Intriguingly, customers weren’t told about the sale in a July 2023 email from Mr Carlson in response to Consumer Protection’s public warning. In the email, Mr Carlson attacked media reports about Factory Direct and praised the Donnellys. The email gave the impression his company was still operating the business and offered a refund plan for clients who wanted their money back. But the refunds, to be paid in monthly instalments, suddenly stopped without any explanation. In his report, Mr Goyal said that a potential shadow director, Mr Donnelly was liable for any loss suffered by Factory Direct in respect to insolvent trading and breach of director duties claims. “I intend to request a statutory declaration from (the Donnellys and Mr Carlson) regarding their asset and liability position to determine the extent of assets that may be available should further recovery action be taken,” he reported. The liquidator also reported he had engaged Hilton Bradley Lawyers to commence recovery action against Mr Carlson and Ms Donnelly “in respect to insolvent trading claims”. Mr Goyal also claimed there were 10 missing vehicles. “(Mr Carlson) advised that the vehicles were included in the sale agreement, and as such, were no longer owned by the company despite the registration still being in the company’s name at the date of my appointment,” Mr Goyal stated. Of particular interest were two Ford Rangers which were subject to finance contracts with ANZ bank. “On 31 October 2024, my staff held phone conversations with WA Transport who confirmed that the Ford Rangers were transferred to a different entity on 17 October 2024 without my consent,” he said. “We have been working with ANZ to potentially repossess the vehicles as the borrower (Factory Direct) is in default under the terms and conditions of the contract.” Mr Donnelly has written to the liquidator claiming the company owes $6 million to related entities connected to him. Mt Goyal said he was investigating at least 64 transactions totalling $834,407 from the company’s bank account which were without proper description. He said his preliminary investigations indicated Factory Direct did not maintain sufficient financial records to explain the company’s financial position and performance. Meanwhile, another Donnelly business, Profounder Asphalt and Bitumen, which traded as All About Bitumen And Asphalt, was wound up late last year after court action brought by the Commissioner of State Revenue. It owed creditors more than $1.3m. Its liquidator John Bumbak of KordaMentha last month reported his investigations had been “impacted by the failure of parties who hold company books and records to provide them to me,” despite his multiple requests. “I have reported this to ASIC,” he wrote. He also noted a substantial number of payments had been made by the company to another Donnelly-owned business, which required further investigation. “I intend to request a statutory declaration from (the Donnellys and Mr Carlson) regarding their asset and liability position to determine the extent of assets that may be available should further recovery action be taken,” he reported. The Donnellys and Mr Carlson were contacted for comment.