By James Wells
Retravision WA chairman, John Groppoli has outlined the strategic review of the company’s business model currently underway with PricewaterhouseCoopers (PwC) and the retail head office’s bank, ANZ, while the business transfers from central to direct accounting.
In a letter to Retravision WA members sent yesterday, Groppoli explained the role that PwC had within the business.
In this correspondence, Groppoli outlined work currently undertaken to re-open accounts with suppliers, such as Sony, Panasonic and Samsung, and also recommends that stores seek their own advice from accountants.
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Groppoli also encouraged stores that are running out of products to sell to purchase stock from Retravision WA as they close warehouses in Perth and Adelaide, and also outlines a new payment plan for the trading account in order to improve cash flow.
“The reason we have chosen [to work with PwC] is to ensure we are…leaving no stone unturned to protect the assets of the business through the transition…; working with a well-resourced and financially experienced organisation with enormous credibility with the bankers to Retravision WA and Retravision Northern…; the subject of constant financial and commercial rigour and independent review as to each step we take as a board during such a demanding period,” wrote Groppoli.
“Clearly, the vast majority of existing storeowners (the majority of whom are also shareholders) still require a line of future supply which will allow them to trade profitably for many years to come.
“We are working hard to make the application for direct accounts with suppliers as easy as we can and we would encourage all storeowners to focus energy and attention in doing this quickly and accurately.
“I would also encourage everyone to seek the assistance of their own accountants as a matter of priority in the completion of their applications for direct accounts.”