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Ex-West Coast Eagle Andrew Donnelly’s shonky company sinks to new low, reneging on refunds promise

Ex-West Coast Eagle Andrew Donnelly’s dodgy shed and patio business is reneging on refunds to customers who received nothing, despite handing over large up-front payments. Many of those Factory Direct customers say the refunds have dried up and the company hasn’t been returning emails or phone calls. Meanwhile, the company is facing action in the Supreme Court on April 23 to wind it up. The liquidator of another Donnelly company, owed money by Factory Direct, is behind the move. WA authorities issued a stern warning to Factory Direct last July. Consumer Protection urged the public to be wary of Factory Direct, given its shocking record of taking advance payments and then not doing the work. It accused the company of collecting more than $342,000 in deposits, without delivering the works. The warning followed several reports in The Sunday Times and The West Australian exposing Factory Direct’s appalling treatment of customers. “It’s alarming that this business has taken deposits from numerous consumers but have failed to supply the goods and services in a reasonable time frame, and have not been transparent in communicating delays,” Commissioner for Consumer Protection Trish Blake said at the time. “Our investigation into this trader continues and, if breaches of the Australian Consumer Law are identified, further action may be taken.” The company responded by offering refunds to eligible customers, promising to repay them in monthly instalments. But refunds have stopped for scores of customers. Among those owed money was pensioner Helen Scott, 71. In April 2022, Ms Scott and her late husband Wally Ciupryk, 82, paid Factory Direct $11,480 towards a shed that was never built. Mr Ciupryk died in May last year from a massive stroke. His widow believed the stress over the lost money was a factor. She said the shed was meant for all his woodworking machinery that he’d been unable to use since moving to their new home. in Hillarys. “He loved his woodwork and he couldn’t do any,” Ms Scott said. Last August, Factory Direct agreed to repay Ms Scott $9594 in nine instalments. Despite delivering nothing, it kept the balance of $1886, which it said included a non-refundable deposit and the “overhead expenses involved in responsibly managing the complexities of the building process”. Ms Scott said she was missing the January instalment and she couldn’t get hold of anyone at Factory Direct. She was still owed $5783. “I’ve been told by Consumer Protection that I’ve got to take them to court to get the rest of the money,” she said. Consumer Protection this week said its investigation into Factory Direct was ongoing. “While Consumer Protection continues its investigations, we strongly urge consumers to initiate their claims in the Magistrates Court to recover monies owed to them,” a spokesperson said. “While consumer laws in WA give us the authority to receive and investigate complaints against traders, only a court has the power to issue orders requiring a trader to refund money to consumers.” “Where non-compliance with the Australian Consumer Law is identified, Consumer Protection may consider enforcement action, such as a public naming or potentially a prosecution in court.” Ms Scott said the agency appeared to be a toothless tiger with the onus on long-suffering customers to fork out more money to recover their losses in the courts. “Consumer Protection are a total waste of time. There is no protection for consumers at all,” she said. David and Cathy Mauger of Yangebup requested a refund on the patio they never received, but have got absolutely nothing. Like others, they are now being ghosted. “I’ve had no correspondence from Factory Direct since my request,” Mr Mauger said. “They promised the world and never followed through once. We’ve lost over $8000. I’m disgusted there is no viable way to get my money back. After doing some research, it would cost more to chase than what is owed. “Companies know this, so they operate in this manner knowing then is no real recourse for the victims.” Refund instalments to Sebastian Hillar for the backyard patio that was never built ceased in January. “I can’t describe how angry and frustrated we are,” said Mr Hillar who migrated to Australia from Poland. He’d saved hard to renovate the backyard of his new home in Coolbellup. “We thought Australia was a great country lo live in but when you experience things like that it makes you question if there is any justice in this country,” He said. Factory Direct promoted itself as one of Perth’s leading and reputable shed, patio and garage builders. Consumer Protection’s warning was issued against Profounder Factory Direct Pty Ltd and Factory Direct Group Pty Ltd. Mr Donnelly is the sole director of Profounder Factory Direct Pty Ltd, while his wife Natasha is the sole shareholder Ms Donnelly owns 70 per cent of the shares in Factory Direct Group Pty Ltd. The other 30 per cent is owned by business associate Shane Carlson, who became the sole director last year. In an email to customers last July Mr Carlson attacked media coverage of Factory Direct, alleging customers who’d complained to this newspaper were “not past or current clients, but rather unstable individuals easily manipulated by disinformation”. Mr Carlson said the business had been sold to Factory Direct Group Pty Ltd 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. Consumer Protection last year said it had received 60 complaints over contracts entered into as far back as October 2021 where works have not been completed, while full or part payments had been received. “On occasion, consumers were given delivery dates for works to be completed, however, most dates were not adhered to by the business, with little to no communication provided,” Consumer Protection said. “It’s an offence under the Australian Consumer Law for traders to accept payment for goods or services and then fail to supply them either within the agreed time frame or, if not specified, within a reasonable time.” Factory Direct’s woeful conduct, including its failure to respond to customers’ calls, emails and even solicitors’ letters, was revealed by The Sunday Times last year. It is no longer taking orders, but another similar business operated by Mr Donnelly and Mr Carlson is. They are both directors of Australian Shed Company Pty Ltd, which started in August 2022. Another company, Profounder Alliance Robes Pty Ltd went to the wall last year owing 61 creditors $1.42m. Although Ms Donnelly and Mr Carlson were the directors, liquidator Mathieu Tribut said his investigations suggested “Andrew Donnelly may be a de facto director of company”. Based on his investigations, he said it appeared the directors had failed to exercise due care and diligence. “The company appears to have historically traded at a loss; and the company was technically balance-sheet insolvent from its inception,” he reported. “They (directors) allowed the company to continue to trade and incur debts at the time when it was reasonable to expect that the company was insolvent.” Just $4000 owed to Profounder Alliance Robes Pty Ltd by Profounder Factory Direct Pty was behind the court action to wind up the latter. Mr Donnelly, Mr Carlson and Factory Direct all were contacted for comment.

The West Australian exclusiveEx-West Coast Eagle Andrew Donnelly’s shonky company sinks to new low, reneging on refunds promise

exclusive
Ex-West Coast Eagle Andrew Donnelly’s shonky company sinks to new low, reneging on refunds promise