Menswear retailer Ed Harry owes over $8 million to creditors, an update from administrators can reveal.
KPMG's Brendan Richards and Gayle Dickerson were appointed to the firm earlier this month.
Following their appointment - and with the support of key stakeholders - the administrators have continued trading as normal across all 87 stores.
Administrators have also compiled a list of trade, secured and other creditors to the menswear chain.
“We have seen a really positive response from customers since our appointment," Richards said.
“This highlights the strength of the Ed Harry brand and indeed the strong levels of customer loyalty Ed Harry has developed since 1993.”
Richards also confirmed a sale of business campaign has commenced and there are a number of parties who have expressed interest to date.
“We remain hopeful that a sale of business campaign will result in a positive outcome for Ed Harry’s employees and key stakeholders," Richards said.
“In addition, we would also like to acknowledge employees, trade creditors and a number of landlords who have provided support which maximises the prospects of a strong outcome for creditors.”
In the interim, the administrators have continued a clearance sale of existing merchandise with further reductions now added. Gift cards are being honored for one month on a dollar-for-dollar basis.
Outcome of first creditors meeting
At the first meeting of creditors held on Thursday, 24 January 2019 creditors voted to ratify the appointment of Brendan Richards and Gayle Dickerson as voluntary administrators.
At the meeting the administrators provided an indicative overview of the Ed Harry’s creditor position as at the date of their appointment:
The administrators advised creditors it was too early to make a determination on any potential return to creditors.
Any potential return to creditors will be dependent upon the success of the sale of business or inventory realisation program and the order of priority of creditor classes as determined by the Corporations Act.
The administrators also advised they intend to seek an extension to the convening period to enable the completion of the sale of business or inventory realisation program.