Strathfield writes down $4.35m to pay off founder Kelly

By Chris Nicholls

SYDNEY: Strathfield has concluded protracted dealings with former director and company founder, Andrew Kelly, with Kelly’s company, Cavastowe Pty Ltd, to return all its Strathfield shares, which the retailer will write down at a cost of $4.35 million.

As part of its release today to the Australian Securities Exchange, Strathfield said it had concluded discussions with Kelly, who had “agreed to full and final settlement terms for all claims between the parties”.

Kelly’s current company, Cavastowe Pty Ltd, will return all its shares in Strathfield, with the AV retailer taking a one-off hit of $4.35 million.

Strathfield will cancel the 25 million shares after it receives them, but said it is awaiting final legal advice on the matter.

Today’s announcement is a conclusion of dealings that began in 2005, when Kelly retired from Strathfield, hoping to move back into retail with his own company, Cavastowe.

To assist him do this, he announced intentions to purchase six Strathfield Gold Coast stores. That plan has fallen through, with Kelly now living in Hong Kong.

Kelly’s started Strathfield Car Radio when he began selling car radios from Paddy’s market in Haymarket, Sydney.

NB: This article orginally stated Kelly’s company Cavastowe would pay Strathfield $4.35 million as part of its settlement. This statement was erroneous and Current.com.au apologises for any inconvenience caused.

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