This is the latest media release from Grant Thornton Australia Recovery and Reorganisation, in relation to the current Voluntary Administration situation of the fashion house, ksubi.
" '20 January 2010'
Ksubi group update
Creditors of the ksubi group of companies (‘the Group’), placed into Voluntary Administration on 11 January 2010, met in Sydney today for the first time.
At the meeting, creditors were advised that the Group had continued to trade under the Voluntary Administrators’ control with a view to securing a purchaser of the business as a going concern. The Group has debts in excess of $8 million.
The Voluntary Administrator, Paul Billingham of Grant Thornton, also advised creditors that he had received numerous unsolicited expressions of interest in the ksubi brand since his appointment and had met with the Group's major customers who had expressed their desire to see an expedited solution that will secure the future of the brand.
The Voluntary Administrator advised creditors of a joint venture proposal that had been developed in recent days involving certain existing shareholders and the Group’s manufacturing partner, which is aimed at seeing the Group’s business continue in a new entity.
After considering the alternatives, creditors indicated their in principle approval to the proposal which will now be further negotiated and documented with a view to formalisation in the next few days.
The Voluntary Administrator and National Head of Recovery and Reorganisation at Grant Thornton, Paul Billingham, commented: “The relationship between ksubi and its manufacturing partner at both the operational and creative levels meant that to complete a deal without the manufacturer’s involvement would be problematic.
“Although we are a fair way from finalisation, the broad support of creditors, the Group’s lenders, its staff and customers to the joint venture proposal means that there is now the distinct prospect of the ksubi brand surviving and flourishing” Paul Billingham concluded."
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