MELBOURNE: The administrator appointed to oversee the financial problems plaguing discount shopping centre Brands Direct has admitted the company is unlikely to trade its way out of trouble.
Ferrier Hodgson administrator James Stewart said a creditors meeting staged last week showed the company, which trades as Global Rags, was crippled by an estimated $7.5 million debt.
While the full report of unsecured creditors has yet to be confirmed, Stewart said the group included several finance companies and "a lot" of suppliers.
"It's fair to say at this stage the picture is looking pretty grim," he said.
Stewart said a second creditors meeting would be held between Christmas and new year at which time more details would be revealed about the company's present position.
Global Rags - which offers clearance outlets for high profile fashion brands including Grab, Wish, Mavi, Metalicus, Mink Pink, Olive and Lacoste - operates out of Hawthorne but has as many as 10 locations across Australia including at the Sydney Domestic Airport terminal and in Parramatta.