Another two retailers have fallen victim to the deepening retail woes.
Sydney motor vehicle dealership group Damelian Automobile, which comprises of nine dealerships, has been placed in receivership, appointing Ferrier Hodgson partners Steve Sherman and Jim Sarantinos as the receivers and managers over the group.
According to Ferrier Hodgson, the receivership followed an extended period of support from the group’s secured creditor during which time the group was working towards a possible restructure of the operations and reduction of its debt. The appointment was made by the secured creditor which is owed approximately $80 million.
“This will importantly involve engaging with the manufacturers to clarify the position of new car warranties and whether sales can be completed to customers who have paid deposits on vehicles, to then enable us to clarify the position with Rick Damelian Group customers,” Sherman said.
In a separate occasion, boutique ladies and men’s fashion chain Satch Clothing has appointed BDO Partners Stephen Robert Dixon and Laurence Andrew Fitzgerald as voluntary administrators.
The Administrators are continuing to trade in its 14 stores located in Melbourne, Sydney and Perth, and are seeking immediate expressions of interest with respect to the sale of Satch as a going concern.
Notification has been sent to all creditors of Satch advising them of Mr Dixon and Mr Fitzgerald’s appointment and the first creditors meeting will be held on September 13, 2011.