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Small Business Restructuring Success: Disability and aged care services provider

Case study: COVID-impacted business operating in the disability and aged care industry
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Powered by Jirsch Sutherland

“

The SBR process gave us the opportunity to remain in control while making meaningful operational changes.

Business owner

Key savings for this business in distress

623

This business saved $623K off their tax bill

30

Creditors agreed to receive 30¢ in the dollar

70

Company was able to slash 70% off their debts

6

The process completed within 6 weeks

Simple with excellent results

Small businesses are choosing SBR for its simplicity and effectiveness with real results.

Debt Before SBR
$890,000
Debt After SBR
$100,000
Debt Saving
70%
IN DEPTH

The challenges, process and solution

A transparent look into the situation, process and outcome for the client and stakeholders

01.
Background

Industry: Disability and aged care services
Location: Queensland
Employees: 60+
Annual revenue: Approx. $5M–$7M

Disability and aged care provider under pressure

A Queensland-based provider delivering disability and aged care services had built a strong reputation for supporting individuals with permanent and significant needs.

Operating within a broader group structure, the business provided shared staffing resources across related entities. While designed to support governance, over time it became increasingly difficult to maintain clear financial visibility across the group.

During COVID, demand for one-on-one care surged. The business responded by expanding rapidly – growing its workforce and moving into larger premises. While this ensured continuity of care, it also increased costs and exposed gaps in systems and financial oversight.

Despite strong demand, the business came under increasing financial pressure.

Labour costs rose due to overtime, absenteeism and reliance on casual staff, while inefficient rostering made these costs difficult to control. The business also continued servicing unprofitable clients and carried high fixed overheads, including rent.

Financial management issues compounded the problem. Inter-entity transactions were not accurately recorded, limiting visibility across the group. While external accounting advice had been sought, it failed to address longer-term sustainability or identify underlying structural issues.

Reasons for hope

As Chris Baskerville, Partner at Jirsch Sutherland, explains, “This was a business with strong underlying demand and a clear purpose, but it had outgrown its systems and cost base. With pressure building, the director needed a solution that would stabilise the business while maintaining essential services.”

02.
Debt Profile

The company had debts amounting to approximately $890,000. A majority of the debt owed to the ATO.

03.
SBR Process & Proposal

Restructuring in real time while continuing to care

Chris Baskerville was appointed as Restructuring Practitioner under the Small Business Restructuring (SBR) regime, allowing the business to continue trading while a turnaround plan was implemented.

“The Small Business Restructuring process provided a framework to reset operations while continuing to trade, which was critical given the essential nature of its services,” he says.

The focus was on restoring control across operations and financial management.

Operational changes included:

  • reducing staffing levels to align with sustainable demand
  • addressing underperformance
  • improving rostering practices
  • exiting unviable client arrangements
  • fixed costs were also reduced, including vacating high-cost premises.

At the same time, financial discipline was rebuilt. A new bookkeeper and accounting advisers were engaged to correct historical issues, properly record inter-entity transactions and deliver timely, accurate financial reporting.

Hanzel Hizola, Principal at Jirsch Sutherland, says this type of reset is often key in service-based sectors. “We’re seeing more businesses with viable cores but structural inefficiencies – particularly in labour-intensive sectors,” he says. “The key is identifying what’s working and restructuring around that.”

A formal restructuring plan was implemented to deliver a return to creditors. Funded through trading and cost savings, the business committed to contributions of approximately $267,000, equating to an estimated return of 30 cents in the dollar – significantly stronger than the likely outcome in a liquidation scenario.

04.
Outcome

Overall the plan was a success for clients who saved thousands off their ATO bill and creditors were able to obtain a return instead of nothing all.

Return for creditors

  • 30 cents in the dollar (SBR) versus nil if liquidation had been chosen

Company savings

  • $623,000

Key takeaways

Why early, proactive restructuring matters

  • Rapid growth can expose weaknesses in systems, cost control and financial oversight
  • External advice must address structural issues, not just compliance
  • Labour-intensive businesses are particularly vulnerable to margin pressure
  • Clear financial visibility is critical, especially in group structures
  • Early action expands restructuring options
  • Small Business Restructuring can deliver better returns, preserve jobs and maintain essential services
  • Owner saved thousands off their ATO debts
  • Owner is free from stress and anxiety, creditors are off their backs
  • Owner remained in control of the company and day-to-day operations
  • Their employees retained employment, business continued operating
  • Owner can spend time with family instead of worrying about debts
SIMPLE. PROVEN.

A simple path forward for distressed businesses

BUSINESS OWNERS, COMPANY DIRECTORS

Since the introduction of SBR in January 2021, many distressed business owners have contacted us to take advantage of SBR for debt relief and get creditors off their backs.

 

ACCOUNTANTS, LAWYERS, ADVISORS

Hundreds of accountants, lawyers and advisors trust our expertise and have recommended and referred to us their small business clients who are struggling with debt and financial stress. 

They know and trust us to deliver the right solution to help their clients get the relief they need financially and mentally. 

 

Less stress from creditors

Put the days of being chased by creditors behind you

Comparably low cost + quick

SBR is cheaper, simpler & quicker than other solutions which can take months

Improve cash flow

Eligible small businesses can benefit greatly by cutting thousands from their debts

Slash your tax debt

Freedom

  • Reduce business debt owed to creditors
  • Simpler & faster than traditional options
  • Negotiate favourable debt repayment terms
  • Company is protected from legal action
  • Avoid liquidation
  • Improve business cash flow
  • Help your employees retain their jobs
  • Retain control of ordinary business operations
Scissors cutting tax letter

What our clients say about us

Our numbers only tell half the story, below are comments from recent clients we’ve helped

David photo
David
Director of Education Business
Education Business
Working with Jirsch Sutherland was a significant positive step for our business during its restructuring phase…
Their team was notably easy to collaborate with, offering a level of approachability and adaptability that was much appreciated. They demonstrated a deep understanding of the complexities involved in small business restructuring, guiding us through each phase with ease and ensuring we were well-informed.What really made a difference with Jirsch Sutherland was their effective communication. They maintained regular contact with us, making sure we were always aware of the next steps and what was expected from us. This consistent communication helped build a foundation of trust, crucial for the successful restructuring of our business. With Jirsch Sutherland’s guidance, we were able to address our challenges with a clear strategy, helping us to become more streamlined and focused. We’re thankful for their expertise and the support they provided during a critical time for our business.
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Rachael photo
Rachael
Director of Cafe Business
Group of Cafe Businesses
The SBR process was very useful with getting my financial world back on track 👏 …
The process was well explained and was an efficient and moral way of trying to control the debts I had accumulated. I would recommend it to anyone who has been in business over the last few years and gained debts due to the external factors that have affected us all. The Team at Jirsch Sutherland were very professional and great to deal with throughout the process.
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Tom
Director of Manufacturing Business
Manufacturing Business
The SBR process was better than I expected. The Company retained full control of the operations throughout the process…
The Company retained full control of the operations throughout the process and the outcome was exceptional, resulting in a significant reduction of our legacy debts. With Andrew’s help, we were able to provide a clear message to our creditors regarding our business’s difficulties and how they have been overcome. The SBR saved my business.
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Robert
Director of Fashion Business
Fashion Business
Facing significant challenges from the COVID-19 pandemic, my fashion retail business was in a precarious position…
High debts and disrupted supply chains made survival seem uncertain. Thanks to Jirsch Sutherland, recommended by Kelly Partners, we found a way forward. Their understanding, professionalism, and effective negotiation led to a manageable Small Business Restructure with the ATO, enabling us to address our financial difficulties and focus on recovery. I appreciate Jirsch Sutherland’s practical and empathetic approach and recommend their services for businesses facing similar financial issues.
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Matthew
Director of Electrical Business
Electrical Business
The team at Jirsch Sutherland were the ultimate professionals. Michael and Victor smashed my SBR out of the park…
From day 1 they were up front, honest and very clear in the process, outlining potential issues and making sure I was comfortable with the steps we had to take. Michael was always reassuring, helping me understand what was happening and to trust the process.Their seamless integration with my accountant made things easy as well. The channels of communication were always open, even to the point where Michael was speaking to my creditors to help them understand the process.The process from start to finish for my company was simple and completed fairly quickly. The bonus was I was in total control of my company all the way through and the business was able to continue to operate, keeping my clients needs fulfilled.Doing the SBR helped reduce my liability significantly, which means I can now focus on building the business without that substantial COVID induced debt over my head.
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SBR FAQS

Your questions answered

What is a restructuring plan?

It is an agreement between your company and your creditors. There is no set plan, which means they are able to be very flexible. Usually, these plans involve a one-off contribution from someone such as a director, which is paid to creditors by the restructuring practitioner.

Who prepares the SBR plan and how long is the process?

Your SBR practitioner, in consultation with you, has 20 business days to draft a restructuring plan that your creditors will vote on (This can be extended by up to 10 business days). Once presented, your creditors then have 15 business days to accept or reject it. While they are deciding, your business can continue to trade.

What types of debt are included in the SBR plan?

All unsecured debts that were incurred prior to your company entering restructuring are included, with the exception of employee entitlements that are not yet payable, such as leave and redundancy payments. If your company incurs debts after it enters restructuring, these debts do not form part of the plan and need to be paid off outside the plan.

Do all employee entitlements need to be paid?

Yes. The business must pay any employee entitlements which are due and payable before a
plan can be proposed to creditors.

How do I know if my business is eligible?

Eligibility must satisfy these conditions:

  • Total debts not exceeding $1 million
  • Be insolvent or likely to become insolvent
  • Employee entitlements are up to date
  • Tax Office lodgements are up to date. Note you can still have money outstanding
  • The company must not have previously used the small business restructuring process or the simplified liquidation process within the past 7 years

Use our Eligibility Checker

What if my business is not eligible?

There are alternative options such as:

  • Voluntary Administration
  • Creditors Voluntary Administration
  • Liquidation

Best to contact one of our experts to discuss your options.

What if my SBR plan is not accepted?

If your plan is rejected, then the restructuring process is over. While you remain in control of your company, your creditors are able to enforce their rights. Your protection from liability for insolvent trading also ends. Your options now include voluntary administration or liquidation.

What is the cost to undertake SBR?

The fee of the Restructuring Professional for developing the restructuring plan and liaising with Creditors about the SBRP is agreed and fixed up-front.

How do I begin the process?

First you appoint a small business restructuring practitioner who needs to be a registered liquidator. They will act on your behalf during this process and ensure you are compliant with the following:

  • Employee entitlements that are due have been paid, excluding leave and other entitlements not currently due to be paid.
  • Tax lodgements are up to date.

Get in touch today for a free 30min consult to discuss your options

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