A North Parramatta store that describes itself as the “largest specialist audio-visual retailer in Australia” has entered administration despite reportedly turning over $https://www.businessnewsaustralia.com/100 million in the last seven years, with 35 jobs lost immediately as the businesses ceases trade.
Ken Whittingham and Mark Robinson of Fort Restructuring have been appointed administrators of Life Style Store (LSS) following a business dispute with its recently established national sister chain Theatre at Home, which was earlier and separately placed into administration.
A few months ago LSS had made allegations on social media about a mortgagee in possession “unlawfully” taking control of LSS’s Theatre at Home and Roqo on https://www.businessnewsaustralia.com/10 April, before placing them both in administration on https://www.businessnewsaustralia.com/15 April.
This mortgagee, a secured creditor, allegedly had security escort all staff off of the property, “taking control of our assets and thereafter restricted our access to the business”, LSS claimed.
Amidst these and other allegations against the creditor, LSS asserted at the time that it had not been placed into administration or receivership, but had recognised the business could not be operated in its existing format.
“We are truly sorry for what has transpired and ask for your patience and support as we continue to explore all options to see how we can look after our Theatre at Home and Life Style Store customers and will update you as the situation develops,” the company stated at the time.
LSS administrators have started investigating a series of investments and agreements between LSS and Theatre at Home, and have called on all parties caught up in this to reach out to provide their perspectives in order to maximise returns to creditors, including employees.
“We are the early stages of what we expect will be a complex administration,” Whittingham and Robinson said.
“As is often the case in these matters the immediate impact is unfortunately felt by frontline staff, with 35 losing their jobs as the business ceases trading.
“While it is early in our investigation, we also believe up to 60 customers of Life Style Store may be impacted and waiting for goods or services.”
Fort Restructuring was formally appointed as administrators on https://www.businessnewsaustralia.com/1https://www.businessnewsaustralia.com/1 June, and the first creditors’ meeting is due to take place on Friday, 2https://www.businessnewsaustralia.com/1 June.