The Victorian government has confirmed it is consulting with the administrators of a collapsed Melbourne-based security firm as 1,700 jobs hang in the balance.
MA Services provides security, cleaning and maintenance staff to the public sector and major retailers, including Coles, Kmart, Aldi, Amazon, Dan Murphy’s and several AFL clubs.
The company, which administrators say operates across the country, entered voluntary administration on Tuesday.
It has also had its licence cancelled by the Victorian Labour Hire Authority, which it requires to operate.
Up to 1,700 workers are now facing redundancy.
In a statement, a spokesperson for the Victorian government said it was consulting with the company’s administrators.
The company has worked with the government, including by providing security at Melbourne’s Southern Cross Station and Federation Square.
“We note that the administrators are evaluating ways to preserve continuity of services and future employment opportunities where possible for impacted staff,” the spokesperson said.
The spokesperson said government operations were not expected to be impacted.
“We expect MA Services to fulfil all of its obligations to staff and contractors,” the spokesperson said.
MA Security has provided services for the Victorian government. (Facebook: MA Services Group)
Additionally, the spokesperson said the government had suspended MA Services from its “supplier panel” on December 12, meaning the company has been unable to enter new contracts with state departments and agencies.
Melbourne council assured ‘continuity of service’
Wyndham City Council in Melbourne’s west, an MA Security client, said it had been assured by the administrators that it would provide “continuity of service”.
It said this included the overnight Truganina security patrols which MA Services had been contracted to deliver as a six month trial.
Administrators Glen Kanevsky & Jason Tracy, Alvarez & Marsal said on Tuesday they were “evaluating a range of options to preserve continuity of services and future employment opportunities.”
Kmart said it was continuing to assess the implications of MA Service’s closure, but at this stage there was “no immediate impact on operations.”
On Tuesday Coles said it was looking for a new security firm but had put “interim measures in place”.
MA Services, Dan Murphy’s and Aldi have been contacted for comment.