Questions surrounding the financial health of Colorado Group continue to mount, with rumours of an impending receivership doing the rounds once more.
The parent company of labels including Diana Ferrari and Jag has been the subject of collapse rumours since 2009, with reports repeatedly referencing the company's high debt levels. Colorado Group's debts have been reported this week as totalling $387 million.
Accounting firm National Consulting Group has reportedly been working this month with Colorado Group and its lenders on the retail and wholesale company's financials. It is alleged National Consulting Group's recommendations to lenders include placing Colorado Group into receivership or selling off its portfolio of brands.
Colorado Group is currently owned by private equity firm Affinity Equity Partners (AEP) which invested in the business in November 2006. Prior to falling under control of AEP Colorado Group had been publicly listed on the Australian Stock Exchange. The company's history dates back to 1864.
Brands and retail chains currently within the Colorado Group portfolio include Colorado, Mathers, Williams the Shoemen, Jag, Diana Ferrari and Pairs Footwear Outlet. The company operates over 430 stores across Australia and New Zealand.