Iconic Melbourne retailer Fat 4 has plunged into administration - but is there a white knight waiting in the shadows?
Daniel Juratowitch and Bruno Secatore, of accountancy firm Cor Cordis, were appointed to the company on August 28.
Minutes from a creditors meeting on September 7 revealed the company was in the final stages of a sale of the business prior to their appointment.
Administrators confirmed an offer had been received to purchase Fat 4 business and its associated assets.
Juratowitch revealed an information memorandum had also been distributed to approximately 35 interested buyers prior to his appointment.
Fat 4 trades through five retail stores.
"The inability of the company to complete a timely sale is what ultimately led to my appointment as the company did not have an adequete cash flow to continue trading whilst finalising the sale," Juratowitch told creditors.
An administration period profit and loss forecast suggested the business could trade on a marginal/break even basis over just a two week period, with losses to be incurred thereafter.
Juratowitch told creditors he recommended the sale be completed within seven days and sought secured creditor ANZ Bank's consent to proceed.
He did not return ragtrader.com.au's calls for comment.
According to the minutes however, creditors were due to receive an official report from administrators just yesterday.
The report would reveal the date of the second meeting of creditors and further updates on a possible sale.
According to minutes from the first meeting, there are some 220 Fat 4 creditors with $1.1 million owed to unsecured suppliers.
Secured creditors are owed $350,000 and priority creditors are owed $189,621.
Brands stocked by Fat 4 have included Bassike, Arnsdorf, MM6, Opening Ceremony, Karla Spetic, Nudie Jeans and We Are Handsome.
Fat 4 isn't the only major name to land in hot water. Pick up a copy of Ragtrader's October edition for more.