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BackFormer staff and voucher holders raise concerns over unpaid super and refunds as Rumi on Louth island resort listed for sale
Former staff and voucher holders raise concerns over unpaid super and refunds as Rumi on Louth island resort listed for sale
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ABC Top Stories10 minutes agoBusiness2 min readAustralia

Former staff and voucher holders raise concerns over unpaid super and refunds as Rumi on Louth island resort listed for sale

Quick Look

  • Former employees of Rumi on Louth resort on Louth Island, South Australia, report outstanding superannuation entitlements, while voucher holders seek refunds after the eco-resort was listed for sale.
  • Co-owner Che Metcalfe confirmed unpaid super will be addressed via refinancing or sale, and vouchers extended by 12 months, insisting reopening and expansion plans remain unchanged.

AI-generated summary

Why It Matters

Rumi on Louth is an eco-resort on Louth Island, 10 minutes from Port Lincoln by boat, operated by Ika Shima Pty Ltd. It opened in 2023, paused operations in May 2023 for recapitalisation and stage 2 expansion planning, and was listed for sale earlier this month.

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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.

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?"

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".

"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."

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".

"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".

What to Watch

AI outlook — possibilities, not facts

  • Outstanding superannuation contributions will be addressed during the refinancing or sale process

    Very likely · Within weeks

  • Existing Rumi vouchers will be honoured when operations resume

    Likely · Within months

Open Questions

  • When will the refinancing or sale process be completed?
  • What is the exact amount of outstanding superannuation owed to former employees?
  • Will the resort definitely reopen after the sale or refinancing?
  • Are there any interested buyers for Louth Island?

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This article was originally published by ABC Top Stories.

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