Resort says sale or refinancing will address 'outstanding' superannuation
Former Rumi on Louth staff and customers have expressed concern about outstanding super and voucher entitlements, as the island is listed for sale.
The millionaire co-owner of the award-winning South Australian island resort has acknowledged some former workers' "superannuation contributions remain outstanding" and will be addressed "through either the refinancing or sale process", but has insisted that does not change plans for re-opening and expansion.
The $30-million eco-resort, located 10 minutes from Port Lincoln by boat, is run by Ika Shima Pty Ltd trading as Rumi on Louth and faces a clouded future after being listed for sale earlier this month.
The Rumi on Louth resort includes a restaurant, accommodation and outdoor experiences accessible through a buggy. (Supplied: Rumi on Louth)
Co-owner and director of Ika Shima Pty Ltd Che Metcalfe opened the sprawling retreat, which includes accommodation, fine dining and outdoor experiences, in 2023 but temporarily shut the doors in May while investigating how to fund the development's second stage.
Outstanding super 'taken seriously', owner says
Port Lincoln visa worker Scott Houston told ABC Eyre Peninsula Breakfast that he is owed "a couple of grand" in superannuation and is now looking for another sponsor to remain in Australia.
He said the sudden dismissal was "devastating" and questioned if the resort would reopen.
"If it didn't work the first time, how could it work the second time?" he said.
"You've cut off some of the best employees you could have had, how could you possibly reopen?"
Scott Houston (right) during his time working at Rumi on Louth. (Supplied: Scott Houston)
In a statement, Mr Metcalfe said Rumi on Louth "temporarily paused operations … while pursuing recapitalisation and planning for stage 2 expansion" and was "concurrently exploring the sale of Louth Island".
Rumi on Louth resort co-owner Che Metcalfe. (Supplied: LinkedIn)
"All employees were paid their wages, accrued leave and other termination entitlements when operations paused," he said.
"Some superannuation contributions remain outstanding, which we take seriously, and intend to address through either the refinancing or sale process."
Voucher holders ask for refunds
A two-night stay for two guests starts at $2,062, while a three-night stay for two during the peak New Year period costs $5,080.
With the price tag, the closure has unsettled some gift voucher holders, including Susan Thompson and mother Margaret Harvey.
"It's a substantial amount of money toward what was meant to be a special occasion," Ms Thompson said.
"Now, we're in a position, as I know many within our community are, that we don't know, firstly, if we'll be able to use our vouchers, and secondly, when."
Margaret Harvey and Susan Thompson had planned to visit the resort for a family gathering. (Supplied: Margaret Harvey)
Ms Harvey said at first, the resort told her there would be "the possibility of a refund". Then it said she had been provided incorrect information and extended the voucher's expiry date.
She described the company's communication as "disappointing", having taken two weeks to respond to questions about the voucher's validity.
In response, Mr Metcalfe said "all existing Rumi vouchers have been extended by 12 months, and our intention remains to honour them when operations resume".
"If the business is ultimately unable to honour those vouchers, they will be refunded,"
Mr Metcalfe said.
"Given the confidential nature of current processes and privacy of individual employment matters, I don't intend to comment further on speculation or individual circumstances."
He also said the company's vessels, used to ferry visitors over, "have not been sold and remain with the business".
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