Explore the latest developments concerning Buyer's agency clients.
Buyer's agency clients urged to proceed days before collapse
David Meehan says he paid Dashdot $23,100 in April, and did not receive the property investment services he was promised. (ABC News: Daniel Irvine)
Buyer's agency Dashdot, which collapsed in May, has estimated liabilities of $16.6 million but just $71,000 in estimated realisable assets, according to an initial liquidators' notice obtained by ABC News.
The liabilities include $10.6 million in prepaid services or refunds it owes almost 700 customers.
Liquidators are investigating Dashdot's affairs and are expected to release a report to creditors within three months.
Customers were still being encouraged to proceed with Dashdot's property investment services just days before the buyer's agency entered voluntary liquidation, according to emails and messages obtained by ABC News.
Dashdot owed $16.5 million at time of collapse
Property buyers agency Dashdot owed more than $16.5 million at the time of its collapse, with the Australian Taxation Office, Meta, startup lender Mighty Partners, and 695 customers among its creditors.
A preliminary report prepared by Dashdot liquidator Rebecca Gill, of corporate advisory firm Teneo, shines a light on the finances of a startup that abruptly closed its doors late last month.
The report arrives two weeks after co-founder Glenn ‘Goose’ McGrath blamed tough economic conditions, tax reforms designed to make property investment less enticing, and social media marketing costs for the company’s collapse.
Dashdot Pty Ltd — the only corporate entity under the Dashdot banner under voluntary liquidation — owed the tax office nearly $916,000, the report shows.
Fluffy Rugs for Bedroom Fuzzy Area Rugs for Living Room Soft Kids Carpet Non Slip Rugs for Hardwood Floors Room Decor
Deep dive: Inside the unravelling of buyer’s agency Dashdot
One day after the Albanese government handed down sweeping curbs to long existing housing tax concessions, Dashdot founder Glenn ‘Goose’ McGrath moved to reassure his property investor clients. “The plan still works. The maths still works. And we’re still here,” he wrote in a letter dated Wednesday 13 May.
Just two weeks later, the buyers agency — one of Australia’s largest — collapsed into voluntary liquidation. It has left hundreds of customers, who paid tens of thousands of dollars in upfront fees, out of pocket to the tune of millions and searching for answers.
A creditors’ report filed with ASIC last Friday and viewed by Capital Brief shows Dashdot collapsed owing $16.57 million. Stranded customers are cumulatively owed $10.6 million for prepaid services and refunds, venture debt provider Mighty Partners is listed as being owed $1.5 million, while staff are due $1.1 million in employee entitlements.
For more detailed information, explore updates concerning Buyer's agency clients.
