The Sydney base Lifestyle Store has been padlocked with directors not returning calls, insiders are telling ChannelNews that the premium audio and custom install, business is facing a “mountain of debt,” and that the next 48 hours will determine the future of the business.
We also understand Theatre At Home which is linked with the Lifestyle Store is also being wound up with industry executives claiming that they are “Not surprised it has not happened earlier”.
A former staff member has told suppliers that he no longer works for the business and that “the receivers have been called in”.
Recently Vinod David (seen below) the CEO of the business who a few weeks ago sold down some of his shareholding in the Company claimed that the Company was “not going broke”.
A search of the Australian Securities and Investment Commission Administration and Insolvent Companies web site reveals no listing at this stage for the North Parramatta business, with some observers questioning the setting up of new Company on the 6th of March 2024, using the name Lifestyle Store Australia at the same address as the current Lifestyle Store.
The sole director of Lifestyle Store Australia Pty Ltd is one Rodney John Humphries.
This is not the first time that executives involved in the business have had businesses placed into liquidation, with questions now being raised as to whether an engineering operation has been undertaken, to jettison debt with another business taking over the name, fittings, and stock of the existing business for cents in the dollar.
Vinod David told ChannelNews two weeks ago that the Company was experiencing “Growing pains”.
“We have been upfront with suppliers, and we have worked through payment plans and all our suppliers are happy with where we are currently at despite a tough January and February” he said.
ChannelNews understands that the Australian Tax Office is owed tens of thousands of dollars by the business.
This is not the first time that the audio Company has owed money to the tax office. Just before COVID senior industry executives loaned the business money to clear what was believed to be then a $2M tax debt.
We have also been told that the business recently sold their ownership in the vehicle custom install business that was based at the back of the Lifestyle Store.
One new shareholder in the Lifestyle Store is Danny Assabgy (Seen below), the CEO of Sydney-based Hudson Homes and Investment Company Equiti, also owned a share of the Theatre At Home network of retail stores recently. 18 months ago, he came to ChannelNews in an attempt to try and find someone who would buy the share.
ChannelNews understands the business was not tracking well at the time and he wanted out.
We now understand that this shareholding and the $5M he loaned to the business was taken consideration when Vinod David sold down his shareholding in the business.
