Melbourne-based apparel supplier PSS Clothing, which is owed $2.2 million from the recently liquidated BEM Corporation, has now itself plummeted into administration.
PSS, which was owed the huge amount from BEM, which traded as womenswear chain Barkins, was forced to haul in administrators Hall Chadwick on January 25 – just two months after BEM brought administrators in.
In a copy of the minutes from PSS’s latest creditors meeting in March, chairman Richard Albarran, from Hall Chadwick, said that PSS’s directors are now in the process of formulating their proposal for a Deed Of Company Arrangement with their advisors.
“The directors have also recently engaged in discussions with the secured creditor, National Australia Bank (NAB) in this regard to ensure any proposal is satisfactory to NAB,” Albarran said.
PSS owes about $3 million to NAB, more than $1 million to the Allianz Australia Workers’ Compensation and hundreds of thousands more to more than 20 other creditors.
Nanjing Textiles, Gold Fashion Industrial Co Ltd, BDO and Complete Freight Concepts are among the creditors.
Albarran said he is confident that a proposal will be formulated soon and the meeting was adjourned for a maximum of 45 business days.
