C-Mac Industries Co-op: Why did it go into Liquidation?

Abstract

After a seven-year journey attempting to transfer ownership of a fifty-year-old family engineering manufacturing company, the first worker cooperative was established in NSW after the introduction of the new National Cooperative Legislation. This was a top-down business succession initiative overseen by Dr Anthony Jensen utilising a participating action research (PAR) approach.

An ESOP was put in place but failed, sale offer to employees failed, open market sale with no one interested, management buyout offer and finally the worker coop idea succeeded. Many lessons were learnt.

Rob McMaster, the former General Manager, wrote a book called “Swapping Desks” detailing the failures and wins leading up to the coops formation.

The coop lasted three years and went into voluntary administration, but it still went into liquidation even with a full order book! C-Mac Industries Cooperative Ltd was sold and now runs as three separate incorporated businesses.

What happened?

There are answers here as to why there are only 16 worker coops in 2020 Australia wide!

Biography

Rob McMaster, now retired, was a former member and director of the C-Mac Industries Cooperative for three years. Prior to that, a toolmaker tradesman and general manager of the family engineering business for 38 years.

Now living in the Hawkesbury area North West of Sydney with his lovely wife. Blessed with three married children and eight grandchildren.

Active in the local community as a business chaplain and welfare officer for the Hawkesbury Chamber of Commerce and leading up a Community Wealth Building initiative for the Chamber.

Rob is also one of the co-founders of the newly created Blue Tongue Cooperative Development Network. A consultancy not-for-profit cooperative helping business owners transfer ownership to their employees.