Central Victorian Laundry Services owes 35 creditors a total of $725,000, according to liquidator Robert Cole.

He said CV Laundry had $355,000 in bank debt, and former employees were $38,000 out of pocket.

The company sacked about 10 staff in March and is believed to have made further staff cuts in recent months.

In October, the Fair Work Ombudsman recovered $22,729 for five former workers who had been underpaid entitlements.

These included annual leave and long service leave pay, pay in lieu of notice and accrued overtime on termination of their employment.

Mr Cole said a meeting of creditors had been held last week.

CV Laundry would be put up for sale as an operational business.

Laundry equipment at the East Bendigo factory was valued last week, and it will be put up for auction if a buyer for the business cannot be found.

Mr Cole has not yet been provided with the valuer’s report.

“Even though the business is not operating, all the equipment is functioning and ready to go.”

The sale depended on what value entrepreneurs put on the business, bearing in mind there were few similar laundries in the vicinity.

Mr Cole said two people were employed by the business when it went into liquidation.

A decision on whether to auction laundry equipment would be made before the end of the year.

A former employee claimed to be owed about $5000 in unpaid superannuation.

The employee had no idea the business was in such a dire financial position.

“It doesn’t make sense to me. I don’t understand how they got into that position.

“It’s got such a bad name now it would be hard to get it going again.

“Once you’ve lost clients it’s very hard to get them back.”

CV Laundry manager Trevor McGregor did not return The Advertiser’s calls.