Shonky building business connected to former West Coast Eagle Andrew Donnelly wound up

A notorious building business owned by the family of ex-West Coast Eagle Andrew Donnelly has been forced into liquidation. The Supreme Court of Victoria on Wednesday ordered Factory Direct Group be wound up following an application by one of its many creditors. In April, The Sunday Times revealed Factory Direct had reneged on promises of refunds to long-suffering customers it had failed to supply sheds, patios and garages to. The refunds, to be paid in monthly instalments, were offered after authorities issued a public warning about its poor conduct, which had previously been exposed by The Sunday Times. Consumer Protection issued the warning in June last year against two connected entities that operated the business. Mr Donnelly is the sole director of one entity, Profounder Factory Direct, while his wife Natasha is the sole shareholder. She also owns 70 per cent of the shares in Factory Direct Group. Shane Carlson, its managing director, owns the other 30 per cent. Consumer Protection urged the public to be wary of Factory Direct, given its shocking record of taking large advance payments and failing to deliver. It accused the business of collecting more than $342,000 in deposits, without doing the works. The watchdog received more than 60 complaints between 22 March 2022 and 29 June 2023. On Friday, Consumer Protection said its investigation into Factory Direct was ongoing. Asked why it hadn’t taken stronger action, the agency said it needed to consider all responses and ensure “respondents were afforded procedural fairness”. “In line with our compliance and enforcement policy, various public interest factors are considered for and against prosecution action against an entity,” a spokesperson said. While their business was under an avalanche of complaints, the Donnellys last year jetted off to Europe, where they enjoyed a ski holiday at a premium resort in the French Alps, The Sunday Times revealed. Mr Carlson responded to Consumer Protection’s warning by promising to do better. “Please rest assured that your satisfaction is our top priority, and we are dedicated to rectifying any concerns or inconveniences caused by the delays,” he wrote in an email to customers in July last year. “We encourage you to reach out to us directly with any concerns or questions you may have,” he added. But customers have since complained it was impossible to communicate with him or any other staff after refund instalments ceased. Suppliers also owed money hit the same brick wall. One of them, Perth-based Supacoat Powdercoasters, was behind Wednesday’s winding-up. Factory Direct had coughed up some of the money it owed Supacoat on the same day, but it wasn’t enough to stop the court action . Another supplier Prestige Powdercoaters was owed about $38,000. It successfully obtained a court judgement against Factory Direct in May last year. “They agreed to (repay us) $1000 a month,” managing director Steve Cangemi said. “We got one payment of $1000 a month, and we didn’t get another brass razoo. “I’ve rung Shane (Carlson). I’ve left messages with him. I’m at the end of my tether.” Phil and Caroline Smith of High Wycombe were still owed $22,000 they paid upfront for a carport and some other works. Their contract was signed in June 2022. “They came and took some measurements - that’s the last I saw of them,” Mr Smith said. “They made me falsely believe they were going to do the right thing. I trusted them, and that’s what hurts the most. ““It’s disgusting. How have they got away with this for so long.” Mr Smith, 65, has had several heart operations and has been told by his doctor that he can’t return to his work as a manual labourer. “I’ve had a hip replacement operation, and I can’t work at the moment, so we’re really struggling,” Mrs Smith, 67, added. “That money would have come in very handy right now until I can get back to work.” Mr Carlson claimed last year the business had been sold to Factory Direct Group in June 2021. “Neither Andrew nor Natasha have received any financial gain from that sale nor do they receive any distributions from the business,” he wrote in the email to customers. “Profounder remain as a financial investor and have a long term view of its investments. “Andrew and Natasha’s impact and support cannot be overstated ... They have instilled in us the importance of maintaining guiding principles and staying true to our values ... It is crucial that we stay true to our principles, because in the end the only thing that matters is that we are judged by our actions.” “With Profounder’s support ... we have re-evaluated our payment terms and refund policy to align with Profounder’s commitment to fairness and transparency,” he added. The Commissioner of State Revenue was trying to wind up Profounder Factory Direct as well as Profounder Asphalt and Bitumen. The Donnellys were contacted for comment.