Danny Assabgy, the CEO of Hudson Homes and investment Company Equiti, has taken control of both the Lifestyle Store in North Parramatta as well as Theatre At Home, with receivers set to be called in tonight, the losses are believed to be in the millions with one insider claiming between $10 and $20 million in losses, the horror story unfolded after an audit of the Companies books by an independent accountant linked with an investor.
Both former executives John Kranitis and Vinod Christie David who have run failed businesses in the past, were booted from the business immediately that financial the irregularities were discovered.
Neither former executive is returning calls.
Assabgy a seasoned business executive who invested millions into Theatre At Home, took possession of both businesses as a ‘Guaranteed shareholder” this week and when he realised the business “was trading insolvent”.
After putting in his own financial controllers he quickly discovered that the business was a mess with customers who had handed over 30% in deposits tipped to now lose their investments and tens of thousands in deposits for goods and services including custom install of theatres.
ChannelNews understands that several suppliers are also set to be hit with management in recent weeks running massive discount sales of stock which is not recoverable.
We understand that showroom areas both upstairs at the two level property and downstairs have been “stripped bare” of stock following discount sales.
In an exclusive interview with ChannelNews Assabgy said “I don’t want this business. It’s in an excellent location and it has good customers. The problem was that the business was being run poorly, too many staff and poor cost control”.
“With the right management team this business can grow. I made a mistake investing in Theatre At Home and all I want is to recover some of the money I put into the business”.
What’s not known is how much stock is left in the business with some suppliers now looking at obtaining ‘Intervention Orders’ to try and recover stock.
Two organisations, looking to recover goods is Channel Nine and Woolworths who were working with other parties on a disability facility. Chairs ordered and paid for via the Lifestyle Store have still not been delivered.
ChannelNews understands that several brands had moved to cash only for stock while others had extended credit deals with the Lifestyle Store.
More to follow.
