Nearly 50 people who worked for Banksia Securities received termination notices on Tuesday afternoon, as receivers started shutting down the business to return money to debenture holders. And all of Banksia's branches in regional Victoria will close this Friday, following the collapse of the non-bank lender on October 25, receivers McGrathNicol said.
About 37 staff remain in Banksia's head offices in Kyabram and Melbourne focused on returning money to debenture holders, recovering loans and keeping up dividend payments.
Branches will shut in Adelaide, Albury, Ballarat, Bendigo, Echuca, Geelong, Kyabram, Shepparton, Tatura and Warrnambool. Of the people made redundant 28 were employed in the regional branches while 19 were in the head offices.
"The receivers will ensure all entitlements of all employees of the Banksia Financial Group are paid in full," McGrathNicol spokesman Nick Maher added. This includes accrued leave and termination payments.
Another update is expected later this week after a meeting is held for debenture holders.
The Banskia group collapsed in late October after Banksia Securities was placed in receivership owing investors $650 million. Investors purchased debentures from Banksia, which then lent the money out to the local community for mortgages.