Sydney designer to the stars Johanna Johnson accused of underpaying staff

EXCLUSIVE
Sydney designer Johanna Johnson has made headlines dressing the Hollywood A-list for the red carpet.

Sydney designer Johanna Johnson has made headlines for dressing the Hollywood A-list.

Sydney designer Johanna Johnson has made headlines for dressing the Hollywood A-list. Photo: Getty Images

Sydney designer Johanna Johnson has made headlines dressing the Hollywood A-list for the red carpet. Now her former employees are seeing red over her alleged failure to pay them tens of thousands of dollars in entitlements.

The Alexandria-based bridal and red carpet couturier, who has dressed the likes of Mad Men 's Christina Hendricksand Foreign Affairs Minister Julie Bishop, is at the centre of a legal battle to wind up her company after it failed to comply with a court order to pay a former staff member more than $35,000.

Ms Johnson posted on Facebook on Thursday about the company's "expansion plans", which include relocating headquarters to the United States.

Alana Teasel is owed more than $35,000 by Johanna Johnson's company.

Alana Teasel is owed more than $35,000 by Johanna Johnson's company. Photo: Daniel Munoz

But designer Alana Teasel, 29, a former head of production at Ms Johnson's company, is one of a number of former staff members who claim Ms Johnson owes them thousands in entitlements, including superannuation.

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Ms Teasel launched proceedings in the NSW Supreme Court on February 22 to wind up the company after it failed to comply with a Federal Circuit Court order in November to pay her more than $35,000 in contractual damages and penalties. The court had also ordered Ms Johnson personally to pay a $2000 penalty.

"I feel like I need to stand up not just for myself as a former employee but also all the other ex-employees who are owed significant superannuation," Ms Teasel told Fairfax Media.

Johanna Johnson with Julie Bishop on the designer's Instagram account.

Johanna Johnson with Julie Bishop on the designer's Instagram account.

"Seeing Johanna Johnson continue to dress celebrities for free, participate in fashion weeks and go overseas for red carpet collections ... when she owes myself and others [entitlements] is the reason why I have pushed forward with the wind-up of her company."

Fairfax Media has spoken with other former employees who have enlisted the help of the Australian Taxation Office to claim thousands in allegedly unpaid superannuation entitlements.

On Thursday a voluntary administrator was appointed to the company, which could stymie Ms Teasel's bid for a liquidator to be installed.

Actress Christina Hendricks in a Johanna Johnson gown.

Actress Christina Hendricks in a Johanna Johnson gown. Photo: Getty Images

In the Supreme Court on Friday, Ms Teasel's barrister Hugh Somerville alleged the company had engaged in "non-payment of superannuation on a systemic basis".

He raised concerns the appointment of an administrator would incur costs and sought an urgent order allowing Ms Teasel's legal team to serve an application on the company's new administrator, Adam Shepard, for him to be replaced with a provisional liquidator.

Ms Teasel said she had been "fortunate through my personal connections" to have legal representation in the case, including Mr Somerville and law firm Schofield King.

Justice Ashley Black, who presided over the hearing on Friday, said there was likely to be a "contest" between the parties as to whether it was in the "interest of creditors generally for the company to continue in administration".

The court is required to adjourn a winding-up application if it is satisfied that is the case.

Daniel Jones, 28, a former workroom manager at Ms Johnson's company, told Fairfax Media he had asked the ATO to help him recover $23,000 in unpaid superannuation.

"It has been a really horrible drawn-out process," Mr Jones said. "I thought if anyone at least the ATO would be the people to get [the money back]."

Sydney solicitor Carolyn Deigan, of law firm CLS Legal, is acting on behalf of Ms Johnson's company. She said paying employee entitlements in full was "a priority for the company and Ms Johnson moving forward".

"The purpose of appointing a voluntary administrator ... is to investigate the company's affairs and report to creditors," Ms Deigan said.

This included the amount of money owed to individual employees. Ms Deigan said the amount claimed by Mr Jones in outstanding superannuation "would be disputed".

"The company's difficulties have arisen because Ms Johnson was focusing on creation of the designs and looking after the clients of the label and had appointed others to manage the business," Ms Deigan said.

Ms Deigan also said "gowns are not 'gifted' to celebrities but rather loaned to them from the annual collections of the label".

"Loaning garments to celebrities is an industry-wide practice internationally. There is no correlation between the payment of employee entitlements and this practice," she said.

The case returns to court on Monday.