Retail group $20 million in debt but still advertising for franchisees

Despite EzyDVD being in receivership, with recent financial year losses of just under $20 million, the company is still spruiking franchise opportunities on its website.

With employees set to lose jobs and stores facing closure, it is incredibly boisterous of the group to advertise investment in the near-doomed business. Furthermore, this soliciting for new franchisees, each at $230,000 (plus GST and stock), is at best optimistic, and at worst, misleading.

“EzyDVD’s enormous success can in many ways be attributed to the website,” is the first sentence that stands out on the prospectus page, which is still available to view. Another extravagant claim is that “EzyDVD’s dynamic success story is attributed to a dedicated commitment to meeting national and international market demands.”

It could be that this commitment was dedicated, but to describe a company in debt for $18 million, as claimed by Fairfax newspapers, as having “enormous” and “dynamic” success is laughable in its misrepresentation of the reality of the company’s current predicament.

We contacted both EzyDVD and the receivers, Ferrier Hodgson, but are unable to provide further information at this time.To check out the prospectus for a franchise in EzyDVD, click here.

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