On 19 April 2022, Mervyn Kitay of Worrells was appointed voluntary administrator of Esther Foundation Incorporated, which trades as The Esther Foundation.
The Foundation’s mission is to “educate and empower young women through a holistic residential recovery and reintegration program”. It houses numerous residents across several properties in Perth.
Worrells advises the appointment followed the Board’s concerns over the Foundation’s future, given its shortfall in funding now occurring, due to adverse publicity and withdrawal of donations.
The Worrells’ team are now investigating the Foundation’s financial position and expects to report findings to creditors and make a recommendation as to the most commercial and practical way forward for the foundation, in around five weeks’ time.
Mr Kitay said, “It’s a very challenging position given the Foundation’s purpose, however the limited funds available appear sufficient to enable it to remain open for several weeks, and that as a consequence, no current resident will be required to vacate in the near term, unless of course they elect to do so voluntarily.”
Worrells advises that unfortunately, no new incoming residents can be accommodated.
Mr Kitay recommends that any former residents, staff or volunteers of the Foundation who may have a criminal complaint to contact the police if they have not already done so.
Under the voluntary administration process, a first meeting of creditors is held within eight business days of the appointment, and a second meeting of creditors is usually held within 20 to 30 business days, when the future of The Esther Foundation will be determined.
Worrells appreciates the impact the voluntary administration appointment will have on the residents and staff. Worrells reiterates that any former residents, staff or volunteers should take up any criminal complaints with the police so that these may be properly dealt with.
Worrells has 32 offices and 25 principals, across Qld, NSW, ACT, Vic, and WA. Worrells has been providing solvency management, insolvency administration, and forensic investigation services for over 49 years.
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