By Patrick Avenell
Retravision Southern members who choose to migrate to the West Australian and Northern buying groups will not be shareholders under the proposal drawn up by WA CEO Paul Holt and revealed exclusively by Current.com.au. Retravision Southern was placed in voluntary administration on Monday 21 May 2012.
Holt and Northern CEO Phil Scarff have been working on a migration process for “a couple of weeks”, with several key factors determining whether Retravision stores in Victoria, Tasmania and the southern half of New South Wales qualify for membership of the WA or Northern groups.
Under the terms of this “Migration Proposal”, stores in Victoria and Tasmania will join WA while stores in New South Wales will join Northern, which also looks after Queensland and the Northern Territory.
In an interview with Holt this afternoon, he told Current.com.au that migrating members will not become shareholders, though this could change in the future.
“They won’t immediately be shareholders of the Retravision Western or Northern entities, we may well try to find a way of rewarding loyal store owners somewhere down the track, but to try to think about revising share registers in the light of the circumstances we’re trying to manage now would be plainly ridiculous,” Holt said.
Holt said advantages of being a shareholder include receiving a “fairly small” dividend and getting a vote on company matters.
“Shareholders get a vote in the direction of the company, which is seen to be important by certain store owners, not by others,” Holt said.
Migrating Retravision members must provide security to their new Retravision group equal to 2.5 times their average monthly purchases during peak months. They must also “settle all debts with Retravision Southern as a matter of priority – the sooner the better”, according to the Migration Proposal.
New Retravision WA or Northern members will join on a 3-year agreement with a 12-month notice period.
“This is to enable firm commitments to suppliers regarding repayment schedules,” says the Proposal.