MA Services Group enters voluntary administration after licensing breaches trigger workforce cuts

MA Services Group, a national provider of security, cleaning, and maintenance services, has entered voluntary administration, with Jason Tracy and Glen Kanevsky of Alvarez & Marsal appointed as administrators on 23 December, placing up to 1,700 direct jobs at risk and forcing an immediate reduction in operations across multiple contracts.

The Melbourne headquartered company operates in every Australian state and territory and has supplied frontline services to major retailers, public sector bodies, transport hubs, and sporting organisations. Its client base has included supermarket chains, discount retailers, liquor stores, logistics operators, local councils, and state government agencies, reflecting a footprint that spans both commercial and government procurement channels.

According to the administrators, the appointment has exposed breaches of key licensing conditions required for MA Services to lawfully perform certain regulated activities, particularly in the labour hire and security sectors. Those breaches have prevented the business from continuing core functions, prompting an urgent scale back of services and immediate redundancies ahead of the Christmas period.

The administrators said they are reviewing the events leading up to the appointment and are seeking information from founder and director Micky Ahuja as part of that process. They are also assessing the company’s compliance position across jurisdictions, including the status of labour hire and security licenses that underpin its ability to trade.

Employee entitlements have emerged as a central issue, given the size and composition of the workforce. The administrators are engaging with the federal Department of Employment and Workplace Relations to assist affected employees and to clarify access to government safety net arrangements, noting that eligibility may vary depending on visa and employment status.

Parallel to the investigative work, the administrators are exploring restructuring and sale options aimed at preserving service continuity and future employment where possible. That process includes fielding inbound interest from parties considering an acquisition of parts of the business or its underlying assets, particularly contracts capable of being novated to compliant operators.

State and local government clients have moved to contingency arrangements to maintain security and cleaning coverage, while several major retailers have confirmed interim measures are in place as they transition to alternative providers. The Victorian government has confirmed it is consulting with the administrators and has suspended MA Services from its supplier panel, limiting the company’s ability to secure new public sector work.

The administration follows heightened regulatory and media scrutiny of the business in recent months, including allegations concerning subcontracting practices and governance, which the company has previously denied. The administrators have indicated they will continue to engage with regulators, clients, unions, and potential buyers as they work through next steps for the group and its remaining workforce.