“You can still go broke in a boom:” $25 million mining tyres business collapses

A Queensland business which supplied tyres to the mining industry ceased trading yesterday and has had administrators appointed. 

Global Tyre Management Services is based in Maroochydore and had an estimated turnover of $24 million with a customer base in earthmoving fleets and general road transport. 

The company will not be sold as a going concern and instead there will be an asset sale of the trucks, tyres, forklifts and property. 

The staff, which the administrator Deloitte says number “less than 10”, will be made redundant.

Richard Hughes, a partner at Deloitte, told SmartCompany he expects to complete the administration in a month.

“At this stage there have been a few interested parties and we did advertise the business,” says Hughes.

“We are seeing if they have an offer that is superior to auctioning the gear.”

Hughes says the company went under despite supplying the booming mining industry. 

“You can still go broke in a boom as they say, it really depends how you go with working capital and other things.

“The main factor that brought on the business administration is the guy had a deal with a broker in the US and sent over money for tyres and no tyres came back.

“That has been the downfall of the company in my view, but I am still completing my investigations.”

Global Tyre Management Services refused to comment.