Sudden Closure Leaves Clinic Staff and Patients in Limbo

The abrupt closure of Queenstown Health has left employees and patients grappling with uncertainty. Following the announcement on November 21, 2023, the clinic’s operations ceased, prompting staff members like Jingying Jazmin Woo to seek new employment opportunities. The 28-year-old was working on a sponsored five-year visa, with over three years still remaining, and is now facing the challenge of securing a new position.

“I’m just crying and upset and still shocked and very confused to try to figure out what’s happened,” Woo expressed, highlighting her emotional turmoil. Despite her efforts to find work at another practice, she has encountered difficulties. As of Sunday, she had not contacted immigration authorities, stating, “I’m not sure what’s the right procedures during this time because it’s near Christmas.” She remains hopeful that another accredited employer could offer her sponsorship.

The sudden closure has also affected the clinic’s patients. “I feel very sorry for all the patients because it happened so sudden, and even [last Friday] I still got a call from my patient saying, ‘Hey, Jaz, what happened with Queenstown Health?'” Woo added.

Details of the Closure and Financial Troubles

Liquidator Bryan Williams, appointed shortly after the closure, has outlined the circumstances leading to the clinic’s downfall. In his initial report, he stated that he had engaged in “interactive communication” with Cole Mackie, the owner of Queenstown Health, for approximately six weeks prior to his appointment. The discussions focused on the clinic’s financial struggles, including illiquidity and insolvency.

Williams summarized the reasons for the company’s failure, noting that Mackie reported declining sales and rising costs, which resulted in significant trading losses. “Continued trading has proved to be difficult, resulting from issues with staffing and contractors as well as manifest tension between the current and previous business owner,” he explained. It has come to light that Mackie trespassed former owner Neki Patel, the landlord of the clinic, early in December 2023.

Moreover, Williams indicated that potential exposure to unforeseen legal action adversely impacted the company’s performance. “As a result of those factors, and the inability to contribute further capital to the company’s insolvent circumstance, the shareholder elected to appoint a liquidator to finalize the affairs of the company in an independent manner,” he stated.

Financial Impact and Next Steps for Creditors

The provisional statement of financial position, dated November 21, revealed an estimated deficit of $160,425.90. Creditors have until January 9, 2024, to submit their claims and establish priority regarding the company’s remaining assets.

The sudden nature of Queenstown Health’s closure has left a significant impact on its employees and patients alike, with many now facing an uncertain future during the holiday season. As staff like Woo navigate their next steps, the broader implications of the clinic’s financial troubles continue to unfold.