Kleins future under cloud

NATIONAL: The fate of collapsed jewellery retailer Kleins is far from sealed with reports a number of parties have registered interest in purchasing the group.

In an interview with the Australian Financial Review (AFR), Ferrier Hodgson administrator James Stewart said the interested parties had plans of a "different nature" for the jewellery chain.

His comments have added fuel to claims some potential suitors simply wanted to take over the company's retail network and gain access to prime retail locations across Australia.
 
This has caused concern among Kleins' 150 franchisees, which are at a risk of losing tenancies should the new owners ask Ferrier Hodgson to terminate the franchise agreements.

Franchise consultant Stephen Giles told the AFR he was working with a corporate client in a bid to protect franchises and avoid a "carve-up" of the company.