KASHRUT Authority (KA) lawyers have served the three directors of collapsed kosher catering company Passion8 with letters of demand, seeking almost $74,000 in unpaid debts.
KA president Baron Revelman told The AJN the $73,981 debt dated back to April this year, and included $35,000 in unpaid invoices for the KA’s mashgichim services provided to Passion8.
“The licensing contract that existed between the KA and Passion8 contains a clause where the company directors personally guarantee any company debts,” Revelman said.
Revelman said the three directors of Passion8, who signed the aforementioned guarantee in 2006, have “always been good payers” in the past. “The length of time over which it is owed would not usually be a cause for concern,” Revelman said.
“We’re enforcing this clause [with the letter] only because Passion8 has gone into liquidation and we have these personal guarantees to ensure this debt is paid.”
Former Passion8 director Stanley Kahn, who ran the catering company alongside Steve Edelmuth and Graham Flax, told The AJN he was not able to comment at press time.
Kahn’s wife, Felicia, is the sole director of new Sydney catering company Amaze In Taste, which is currently involved in a dispute with the KA over a kashrut licence.
“The KA is a non-profit company and we have no chance of recovering this debt without invoking the personal guarantees.” Revelman said. “The only other way we could recover the funds is to put our charges up, and that’s unfair on the rest of the community.
Revelman said he does not receive a salary, but that the $73,981 owed by Passion8 to the KA covers wages, superannuation and workers’ compensation guarantees, and $29,000 in function levies.
“The function levy is placed on the hosts of a function and they pay it to the caterer, Passion8 in this case, on our behalf,” Revelman said.
“The levy is meant to be passed on to us by the caterer and is calculated according to the cost of the food served and the number of guests.
“It averages out to be about $4 per person and replaces the annual licensee fee charged in other kashrut jurisdictions.”
KA president Baron Revelman.