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Retravision NSW could be split in two
By Sarah Falson
SYDNEY: Current.com.au has obtained a document that Retravision CEO, Keith Perkin, sent yesterday to suppliers stating that supplies for depleted Retravision NSW retail stores can now be sourced from Retravision Queensland and Victoria.
This document coincides with unconfirmed reports obtained by Current.com.au that Retravision NSW, which last month entered voluntary administration and receivership, has been split in two at the Hunter region, with the northern section temporarily joining Retravision Queensland and the Southern section temporarily joining Retravision Victoria/Tasmania, which suggests that the NSW stores might not wield enough buying power to support themselves independently.
The document sent out by Keith Perkin, headed: 'Message to key suppliers, Power Partners, and top 20 suppliers' reads:
“Agreement has been reached between the receiver/manager, voluntary administrator and Retravision for NSW Retravision stores to be able to access stock via Retravision Victoria/Tasmania and Retravision Queensland.
“The offer under this arrangement will be made to all stores but each store will be required to provide sufficient financial information to Retravision to demonstrate their creditworthiness.
“All stores will be required to meet their existing financial committments to the receiver/manager to 24 October and to suppliers if they have taken direct supply, up to the date this new arrangement becomes effective which is expected to be within the next 48 hours. Suppliers will be advised by Retravision Queensland and Retravision Victoria/Tasmania which stores are to be supplied and the effective date.
“The terms under which NSW stores are supplied will be those applying to existing stores in other states.
"Suppliers may need to consider increasing credit limits for Retravision Victoria/Tasmania and Retravision Queensland, in order to accomodate this new arrangement, Please note that this is a temporary arrangement to give stores much needed access to stock. It is expected a more permanent arrangement will be proposed creditors at the second creditors meeting to be held on or before 20 November.”
The 44-year-old buying group, which generates $300 million in purchasing for 120 independently-owned electrical stores, was placed into administration and into the hands of receivers after accumulating debts of over $55 million to over 30 major creditors.
Earlier this year, Retravision NSW was forced to write off debts of $17 million after the collapse of two member stores – Homezone and Valtel.
Only last month, Perkin told this website: “The (NSW) board has taken the decision that they need to restructure the business. They are working with the appointees to see how that unfolds.
"It is not the end of the world and the key issue here is that it is New South Wales and does not impact on the remainder of Retravision.
"The business is in the hands of the administrator and the receiver and they now must undertake their process and sort through the paperwork."
Perkin stressed that Retravision stores in other states would not be affected and that over three quarters of stores in NSW are in a strong financial position.
[Thu 09/11/2006 03:39:16]
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