Harvey Norman Holdings is set to fork out $55M today to buy the failed Clive Peeters retail chain while vendors like Electrolux, LG, Panasonic and Fisher & Paykel chase millions in bad debts.
As part of the deal Harvey Norman will take control of over 32 Clive Peeters branches. Currently LG is owed $8.79 million, Fisher & Paykel $7.23 Million, and Electolux over $9.5 million, while companies like Panasonic, Sony, Bosch Siemens, DeLonghi and Hagemeyer are owed over $1.5 million.
According to the receivers and managers PPB, and executives Phil Carter and Daniel Bryant, Harvey Norman got a discount for taking on up to1200 Clive Peeters and Rick Hart staff. Initally Harvey Norman offered over $60 Million for the business.
As part of the deal Harvey Norman gets stock in hand plus clearance centres and several warehousing facilities across Australia.
Most of the proceeds will go to repaying National Australia Bank, Peeters’s only secured lender, which is owed about $38 million.
Unsecured creditors which include the bulk of suppliers to Harvey Norman are expected to get $0.30 cents in the dollar.
IB Times claims that those figures will vary depending on how receivers and managers of PPB, Phil Carter and Daniel Bryant, handle the assets remaining.
They claim that the lines are further blurred because several of the largest creditors on Peeters’s books are suppliers, who believe stock held by Peeters at the time of its demise belongs to them, and not the retailer.