Russell Robinson NORTH Queensland hairdressers are crusading against changes to the industry that may see vital skills cut from the trade.
CELEBRITY hairdresser Edward Beale is teetering on the edge of bankruptcy.
The star stylist, who once ran 13 salons and employed hundreds of hairdressers, has no assets and earns less than $800 a week selling shampoo products.
Edward Norman Beale, who once snipped the locks of Britt Ekland, John Farnham, Eddie McGuire, Bert Newton, Graham Kennedy and Lady Susan Renouf, is trying to stave off bankruptcy.
"It's his last-ditch effort," an insolvency source said yesterday.
"Tax got the better of him and the GST really killed him."
The source said Beale had been hit by the introduction of the 10 per cent GST in 2000, which resulted in a significant downturn in his business and revenue.
Beale, 62, has tax debts of almost $300,000.
Edward and son Andrew Beale are responsible for the debts as directors of the failed company.
A bankruptcy hearing has been set for tomorrow in the Federal Magistrates' Court but it is believed the proceedings will be adjourned while Beale pleads his case to his creditors.
He has already entered into a temporary legal arrangement, which is an alternative to bankruptcy.
Beale has signed an authority under Part 10 of the Bankruptcy Act, and a meeting with his creditors is set for next Thursday.
He has already entered an insolvency program with a financial trustee through which payments to creditors will be made.
If creditors reject Beale's offer, the ATO can return to the court and proceed with his bankruptcy.
It is not known if Andrew Beale intends to fight the bankruptcy application against him.
Edward, who would not comment yesterday, has been a coiffure icon since the 1970s when he was asked by entrepreneur Harry M. Miller to create the look for the rock musical, Hair.
He was also asked to style the cast of Godspell.
Beale once drove a blue Rolls-Royce, travelled widely and developed a strong network.
He also had his own line of hair products. But all that is all well behind him.
Today, the one-time society snipper works for his family trust company but not as a hairdresser.
"He has no assets and his salons ceased to trade three years ago," the insolvency source said.
"He works freelance for a company owned by his family trust, and makes about $40,000 a year selling hair-care products.
"The family trust owns no assets except the business. His house in Armadale is in his wife's name.
"That is valued at $600,000, but has a $580,000 mortgage over it.
"The rest of the equity in the property was used to prop up his business."
The source said three cars -- two Mercedes and a Ford -- were registered in Beale's name but owned by the family trust.
One vehicle has been financed for $56,000 but is worth just $16,000.
The source said the tax debts are connected with the collapse three years ago of his company, Hibnean Pty Ltd.
Four Edward Beale Salons are operating around Melbourne today, but none is associated with Beale or his family trust.
Source from Heraldsun.news.com.au
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