Administrators for failed accessories retailer Oroton Group have announced that the company will be sold to major shareholder Will Vicars in the interest of enabling the business to continue trading.
It was revealed this morning that Vicars entered into a binding implementation Deed with administrators Deloitte on the 23rd of December, which binds his associated entities to making a cash contribution for the businesss that will save it from total collapse.
Vicars is currently the chief investment officer at Caledonia funds, which holds a 18.2 per cent stake in Oroton, making it the largest shareholder.
No detail was provided on the proposed value of the cash contribution or the plan to pay-off creditors.
“Despite interest, there was no other offer that would have resulted in a superior outcome for the business or employees.
“Our objective has been to avoid a break up or closure of Oroton, preserve employment and as much of the Oroton business as is viable, whilst achieving a value maximising result for stakeholders. Having regard to each of our assessment of the business, the prior sale process and our market testing process, we believe a fully implemented ‘Vicars’ proposal delivers on these objectives,” administrator Vaughan Strawbridge said.
Vicars had previously provided Oroton with up to $3 million in credit facilities in the lead up to the collapse on 30 November.
