The voluntary administrators of REDgroup Retail, Ferrier Hodgson, and the Angus & Robertson franchisees have declared truce after engaging in court proceedings.
The two parties have agreed to put aside their differences and to work together in a process to seek a successful outcome after breakaway Angus & Robertson franchisee group threatened to terminate their agreements with REDgroup Retail.
"This is a good outcome and is important for the preservation of the value of the Group's business as a going concern,” voluntary administrator Steve Sherman said.
The franchisees have withdrawn the termination notices and Angus & Robertson has agreed to discontinue the proceedings in the Supreme Court of NSW, and to preserve the franchise agreements to allow discussions between stakeholders to continue in good faith.
"The franchisees welcome the opportunity to engage in a process which will hopefully achieve a successful outcome for them and, more importantly, their customers," Marie Fitzpatrick, Angus & Robertson Bowral franchisee, said.