Documents filed with the Australian Securities and Investments Commission reveal the company had just $735,000 in total assets when it entered liquidation earlier this month. While secured creditor HSBC recouped a majority of monies owed, key trade creditors included leading logistics firm Dean World Cargo ($203,319), Mimosa ($64,622), Vince Clothing ($42,515), Vogue Logistics ($44,214) and Toll Ipec ($11,753). The Australian Taxation Office was owed $251,908.
Grab Industries commenced trading in 2005 and is co-owned by Grant Moffitt and Amanda Gilham. Administrator James Patrick Downey said while the company was a victim of toughening retail conditions, it would likely resurface in the near future.
“An independent party has purchased most of the stock and assets, so I would imagine the brand will have a life beyond this,” he said. While circumstances behind its collapse have been solely attributed to flailing retail spend, sources close to the company told Ragtrader it had also fallen ill to internal book keeping fraud. Grab Industries’ collapse follows a significant restructure of its retail business late last year, with the Collingwood-based firm commencing the closure its network of 12 stores to focus on wholesale.
Grab Industries told Ragtrader it had 30 - 50 accounts in each Australian state, plus 120 New Zealand stockists at the time of its restructure. It revealed department store David Jones would stock 50 per cent of its 150 piece autumn/winter 2011 range, with other key accounts including Edge Clothing, Maple, Loose Threads and Parliament. The range included Japanese and Turkish denim priced from $119 to $179 and a “revamped” fashion offer including basics, exclusive print tops and dresses from $49.95 to $129 and leather jackets for $249. A three-person design team was employed to back the creative direction of its restructure. When Ragtrader attempted to contact the company head office for comment, it was advised that just two account staff were present at the time of press and developments were being revealed “day to day”. It is understood just one retail outlet was trading by the time of Grab Industries’ collapse. Assia Benmedjdoub
