Toowoomba timber company succumbs to tough times - ABC Online

Posted July 16, 2013 11:14:31

The administrators of a large Toowoomba-based timber company are looking for buyers for the 65-year-old company.

Queensland's largest cypress processor NK Collins is in voluntary receivership.

The company currently employs about 40 people and operates five mills in southern and western Queensland .

Liquidator Terry Van Der Velde from SV Partners says the company isn't in a position to trade its way out of difficulty.

"At the moment we're trying to secure sales of different parts of the business, so for example the head office in Toowoomba we've had preliminary discussions with an interested party."

"It's too early to say whether they will take over at this stage or not, but if they take it over the intention of the purchaser would be to retain employment of all those people on the site."

Timber Queensland CEO Rod McInnes says a rise in royalty payments was part of the reason why NK Collins decided to enter administration.

Forestry minister John McVeigh says a general value review of the royalties is currently taking place with an independent consultant.

Topics: forestry, toowoomba-4350