By Sarah Falson
SPRINGWOOD, Qld: Cooker and rangehoods supplier, Eurolec, has been appointed an administrator following a disagreement with its major Singaporean shareholder and financier.
The boutique supplier, which supplies Eurolec, Stoves and Belling kitchen appliances to Australian whitegoods retailers, is now in discussions with an undisclosed potential buyer who has been identified only as a “major company”.
“An administrator was appointed to Eurolec Australia late last week. The company’s major shareholder and financier in Singapore, withdrew support after a dispute, and they appointed an administrator,” said Eurolec managing director, Martin Shaw.
Shaw couldn’t reveal whether Eurolec was negotiating with a financial institution or another kitchen manufacturer, though the Eurolec brand in particular, which was established in Australia in 1985 and enjoys distribution worldwide, should gain purchase interest from rival suppliers.
“The company administrators are looking at all options, and are in negotiation with a major company, with the view to sell the business and/or its assets and distribution,” said Shaw, suggesting that Eurolec’s brands could be sold off to a larger supplier.
“I am confident the business can be sold due to our strong brands and distribution,” said Shaw.
At this stage, Eurolec is still trading as normal and Shaw does not believe that retailers will experience difficulties obtaining stock from the supplier.
Shaw recommends that any retail customers who need information pertaining to their businesses call him on his mobile.
“Should any customers have any direct queries they should contact me direct on 0438 262 895,” he said.
Only last month Eurolec lost general manager, Jon Onley, after eight months of service to pursue a corporate role, with Eurolec announcing that he would be replaced from within the company.