Court proceedings have begun against breakaway Angus & Robertson franchisee group who have threatened to terminate their agreements with REDgroup Retail.

Steve Sherman, administrator of Ferrier Hodgson, said he was convinced the franchisee group’s actions were “baseless”.

“We have reviewed their notices of termination and are confident there is no proper basis for termination of the franchise agreements,” he said.

Sherman also said that at no time has Angus & Robertson breached the relevant franchise agreements and that the Administrators would be seeking recovery in the courts — as required by law.

“Consequently, in order to protect the interests of the unsecured creditors and to preserve the integrity of the REDgroup companies, we have commenced proceedings seeking confirmation that the terminations are invalid and unlawful and that the franchise agreements remain on foot. We will also be seeking orders for recovery of the arrears owed to Angus & Robertson under those agreements.”