Herringbone seeks white knight
Voluntary administrator Martin Green, of BRI Ferrier, confirmed that while the outlook for the company remained uncertain, the brand's 13 stores would continue operating - at least in the short term.
In a report in The Australian today (December 11), Green said Herringbone directors John Mutton and Matt Jensen were continuing to examine the possibility of raising funds to keep the chain afloat.
"There are a huge range of alternatives from an injection of capital to the outright sale of the business. This is a classic reconstruction exercise and it will ultimately depend on the (will of) the unsecured creditors, but I believe there is a good possibility of a positive outcome for everybody at the end of the day," Green said.
It is understood the list of unsecured creditors includes suppliers and staff with St George Bank believed to be the group's largest secured creditor.
Green reiterated comments made upon his appointment on Sunday (December 7) and said Herringbone's downfall had come as a result of customers curtailing their spending in the face of the economic crunch.
Herringbone had also embarked on offshore expansion "at the wrong time in the cycle", and had been caught out by the slump in the Australian dollar, with almost all products it sold sourced offshore and paid for in US dollars, he said.