Fletcher Jones suppliers have been burned in the multi-millions as administrators continue to sort through the affairs of the iconic menswear retailer.
Last month, the Supreme Court of Victoria granted administrators an extension to convene a second meeting of creditors on March 30, 2012. Since the first creditors meeting on December 19, corporate insolvency firm Cor Cordis has been pursuing a potential sale of the 93-year-old firm.
Administrator Bruno Secatore has declined to reveal the debt owed to secured creditors, nor confirm the retailer owed a reported $8.5 million to suppliers. However, documents obtained by Ragtrader expose the varying financial toll to unsecured creditors, with associated company FJ Trousers owed $2.7 million, Dimmick Nominees owed $2.1 million and Shandong Ruyi Technology Group stung $801,966.
An attendance register from the first creditors meeting also revealed debts to multiple arms of the Australian Apparel Company, the largest of which was $196,665 to its Canberra Property Trust. Other significant creditors include Lap Tak Garment Factory ($413,537), Tradebond International ($377,622), Geelong Textiles Australia ($289,804), Ygm Clothing ($243,484) Carman Investment Limited ($217,421), Austico Apparel ($250,080), South Asia Knitting Factory ($184,894) and Silver Bell Fashion ($167,682).
One creditor questioned the company’s solvency as a result of the sums owed on the register, however minutes from the meeting revealed Secatore did not believe this was the case. “At least half of the debts of the company comprise of shareholder loans which were advanced to fund the company’s operations. My preliminary view is the company did not trade whilst insolvent. However further investigations will be undertaken.”
Fletcher Jones’ last financial report before entering administration, obtained by Ragtrader, revealed it incurred a net operating loss of $178,448 for fiscal 2010, following a $1.6 million loss in 2009. A decrease of 9.6 per cent in sales was attributed to tough economic conditions, a fall in sales, pressure on margins and stock writedowns. Assia Benmedjdoub
