Spas Direct and Sunseal Garden Spas goes under leaving customers up to $25k out of pocket

Australians with debilitating medical conditions and terminal illnesses have been left suffering, and in some cases more than $25,000 poorer, after a company selling spas allegedly failed to deliver them.

The troubling revelations were unearthed after a 7NEWS.com.au investigation found the company at the centre of the alleged activity has operated under several names including Spas Direct, Spas 4 U Australia and Sunseal Garden Spas.

Sunseal fell into liquidation nearly six months ago and Spas Direct went to ground last year, with Google describing the business as permanently closed.

A logistics company known as 3Sixty Global Logistics claims it is also owed more than $1.75 million by Spas Direct and its entities.

Lawyer Mark Carmody, speaking on behalf of 3Sixty Global Logistics (360), told 7NEWS.com.au it had commenced legal proceedings to recuperate the money owed.

“360 is currently owed about $1.8 million for the warehousing and logistics services that it has been providing to JKJ / Sunseal Garden Spas with trading names Spas Direct (Spas Direct) during 2024. 360 has filed two claims against Spas Direct’s related entities for the debt that it is owed,” Carmody said.

The lawyer confirmed 360 is holding more than 500 spas and spa products and is currently considering what action to take.

“The debt owed to 360 is having a devastating impact on its business. Whilst 360 is now at liberty to sell/auction the goods to satisfy its lien, its preference is not to do so. 360 is currently considering its options which may depend upon the progress of the current court proceedings against Spas Direct,” Carmody said.

This is not the first time Sunseal Gardens Spa director Paul England has been accused of dishonest business practices, with a former business of England’s investigated by Today Tonight Adelaide in 2007.

Terry Bartholomai purchased a Mini Plunge Pool from Spas Direct on November 11, 2024 for nearly $16,000. He said he’d bought the spa to treat his debilitating back pain.

“I have two bulging disks in my lower back that impinge on nerve roots as they exit my spine. When they flare up, it is like a shooting pain predominately down my right leg,” he said.

The 57-year-old grandfather said he grew increasingly nervous about his order when Spas Direct released a statement saying “due to an ongoing dispute with our third-party logistics partner, we regret to inform you that we are temporarily unable to release or dispatch any Spas from our facilities”.

Bartholomai is part of a growing Facebook group of disgruntled customers, now with more than 400 members.

Another of those members Kerri Wright said she was struggling to get in touch with the company after purchasing her spa for $15,480.

“Once all invoices were paid over four days, I was then ghosted, no response to phone calls and then the phones were not answered,” Wright claimed.

“I feel angry, frustrated and disappointed that the laws allow businesses like this to continue to operate.”

Compounding the disgruntled customers’ rage was the recent revelation England and his wife Kim England had sold their Gold Coast mansion for $14 million. A preliminary report by the company’s liquidators suggests that $18 million of company funds were used to maintain a luxury lifestyle.

The mansion boasts a casino, commercial-grade pool, waterfront views and several spas.

According to a report by liquidators, “investigations suggest that the Director used over $18 million of the Company’s funds to maintain a luxury lifestyle. For instance, the Director purchased a 2011 Rolls-Royce Ghost for $282,500 using funds he was lent from the Company”.

Customers alleging wrongdoing by England come from most of Australia’s states and territories and are considering a class action.

The Australian Taxation Office told 7NEWS it “cannot comment on the tax affairs of any individual or entity due to our obligations of confidentiality and privacy under the law”.

“If you have concerns about an individual or business, you can report it to the ATO by completing a tip-off form or calling 1800 060 062,” the ATO said.

England did not respond to 7NEWS’ request for comment and 7NEWS is not suggesting there has been any wrongdoing.