By Claire Reilly
As plans get underway for the sale of the Retravision brand to the Narta buying group and the transition of remaining Retravision stores to new branding, the fallout from the collapse of Retravision Southern continues.
Liquidators at KordaMentha have released the minutes for the most recent meeting of its Committee of Inspection, chaired by liquidator and KordaMentha partner Leanne Chesser, outlining the steps remaining for the recovery of money for creditors, and Retravision Southern’s position with trade debtors.
According to these minutes, liquidators are working to recover debts from ten separate store accounts – five of which are working with KordaMentha “to finalise their store accounts” and five of which have “been referred to the liquidators’ solicitors to enable consideration of the various enforcement actions available”.
In addition to the five stores that may come under such enforcement, there are debtor accounts with a further seven stores “who were the subject of a formal insolvency appointment or enforcement action” separate to the administration of the Retravision Southern company as a whole.
Although no figure was named for these seven outstanding store accounts, liquidators are now working with Retravision Southern’s trade credit insurer to recoup the sum, though the meeting minutes note that the insurer is “yet to accept liability for these claims”.
Also holding up the balancing of Retravision Southern’s books are three outstanding Retention of Title (ROT) claims being brought by suppliers. Retention of Title generally involves a third party laying claim to particular property (for example, unsold stock) after a company enters administration.
“The chairperson…advised that the first ROT claim would be resolved as soon as the liquidators received satisfactory evidence of the supplier’s claim over the goods,” the minutes read.
“The liquidators had attempted to enter into mediation with another two suppliers, however, these suppliers had confirmed they were unwilling to mediate to reach a commercial outcome.”
KordaMentha is seeking legal advice as to whether the first of these two suppliers had terms and conditions that were “validly incorporated into its trading relationship” with Retravision, while the second of the two suppliers has brought legal proceedings against the liquidators.
According to the minutes, all of Retravision Southern's secured creditors have been paid in full, while liquidators are "yet to adjudicate on unsecured claims relating to suppliers, trade and other payables".
Current.com.au has sought comment from KordaMentha relating to the specifics of the suppliers seeking ROT claims, as well as the sums owed under the store accounts which have remained unpaid.