Inspire Education Pty Ltd appointed Lee Crosthwaite of Worrells as liquidator on 12 October 2022.
Inspire Education Pty Ltd is the registered owner and operator of the Inspire Education registered training organisation (RTO). Inspire Education is one of Australia’s largest RTOs, with approximately 13,000 students predominately undertaking online education courses.
Prior to the liquidation appointment, Inspire Education’s operations ceased, with approximately 40 local staff given notice and paid their entitlements, including redundancy, late last week.
Inspire Education’s creditors are primarily online marketing and advertising businesses owed approximately $1.2m (representing the last three months only), a Philippines-based services company owed approximately $558k, related entities and loans totalling $535k, and a relatively small quantum of ongoing current account trade suppliers.
Mr Crosthwaite said, “It’s an incredible shame that Inspire Education is in this position after 13 years of business. We’ve got a dedicated team to assist the students who are understandably in a distressing position and who largely paid their fees on an upfront basis.”
Worrells is obtaining all relevant information to assess the company’s liability in respect of course refunds. Avenues are also being explored with other RTOs and the regulator for vocation education and training, the Australian Skills Quality Authority (ASQA), for any student assistance available and guidance on their studies and course status.
The director advised the Inspire Education business was a “very well oiled” machine for 13 years with an impeccable ASQA compliance record, however in very recent times the low-cost high-volume model encountered issues with the speed of converting its courses online.
This slow conversion, particularly for one of Inspire Education’s most popular online courses, severely impacted the revenue stream to meet the overheads. The director stated, “Our billing fell behind for the first time in 12 years with Google on 14 September 2022”.
Worrells advises it will continue to give updates as they become available. And appreciates students’ patience in this early stage of the liquidation.
In the meantime, students and other creditors who wish to make a claim in the liquidation via the Worrells website www.worrells.net.au and can contact the Worrells teams at inspireeducation@worrells.net.au.
Worrells is the leading brand of insolvency and turnaround teams. With local teams in Qld, NSW/ACT, Vic, and WA, Worrells also has the support of a national brand. Its teams has helped people and business recover from difficult financial situations and assisted the creditors attached for over 49 years.
–ENDS–
Lee Crosthwaite
Principal, Worrells Brisbane
lee.crosthwaite@worrells.net.au