Oroton admins ask for more time
Oroton’s first meeting with creditors was held in Sydney on Monday afternoon after the company went into voluntary administration on November 30.
Administrators Deloitte Restructuring Services partners Vaughan Strawbridge and Glen Kanevsky told creditors they have begun their investigation into Oroton’s financial operations.
Strawbridge also said prospective buyers have until December 20 to make an offer, however they will apply in the federal court for a 90-day extension to give them more time to work through sale and recapitalisation options.
“Our focus has been on managing the business, communicating with creditors and employees, examining recapitalisation options and running the sale of business campaign,” said Strawbridge.
“We have also commenced our investigations into the financial operations of the group.”
Ultimately, everyone is keen to support what we are doing with a view to providing for a future for the business.
He said interest from prospective buyers to date has been encouraging.
Oroton sank to a $14.3 million loss in the year to July 29, compared to a $3.4 million profit the previous year due to falling sales and a failed venture with US apparel brand Gap.
The group’s 62 Oroton stores across Australia, New Zealand and Malaysia, which employ about 550 staff, continue to operate under the administrators.