By Claire Reilly
Documents from Retravision Southern’s administrators have revealed the full scope of the collapsed retailer’s financial difficulties, including more than $30 million in debts owed to the company by its member stores.
A report to creditors from administrators KordaMentha, obtained by Current.com.au, includes a Report as to Affairs (RATA) that was provided by Retravision Southern’s directors at the time the company went into voluntary administration.
The most significant figure found among the company’s asset statement was the book value of its sundry debtors, which includes $31.5 million of debt owed by member stores. In addition, Retravision Southern records show that the company is owed $10.3 million in rebates from suppliers. However, the company also accounted for a $134,000 loss as a provision for doubtful debts.
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The RATA also shows that Retravision Southern had more than $4.7million in stock on hand when administrators were appointed, of which approximate $200,000 was held at the company’s head office and $4.5 million in third party warehouses.
“We were unable to secure access to the third party warehouses to undertake stocktakes until 24 May 2012 [3 days after the company went into voluntary administration] and 28 May 2012,” the administrators wrote.
“We also became aware of a supplier gaining access to the warehouse on the day of immediate notification of our appointment and removing stock with a book value of approximately $120,000, despite immediate notification of our appointment to the third party warehouses.
“We requested the return of this stock or the proceeds from the sale of this stock be returned to Retravision Southern, however, the supplier is asserting a Retention of Title claim against the goods.”