The Federal Court in Australia and the High Court in New Zealand this week gave REDgroup a few extra months to try to sell off enough assets to remain trading.
Administrators Ferrier Hodgson now have until September 17 and 18 to come up with solutions (Read: sell assets) for the creditors of REDgroup and it’s brands Angus & Robertson, Borders, and Whitcoulls in New Zealand.
The New Zealand Herald reports that there are still plenty of hoops to jump through:
This means the administrators may convene a meeting of creditors at any time during the convening period.
Under the voluntary administration rules, a so-called “watershed” meeting, where creditors are advised of the state of play with the company, needs to be held five weeks after the appointment of a voluntary administrator, which would have made it March 24.
I can’t see the company surviving, even given the extra time to put up “for sale” signs on all parts of the business.
Given that the business is mostly centered on selling physical books in large bookshops, I don’t think another six months is going to help it one iota. The business is only going to get a little more competition from international online traders like Amazon, and ebooks in general.
Had they not had to deal wi the PR damage to the brands, the ebookstores may have been worth more in six months. Not now.
Ok. I have looked at the EoI.
Some intresting data in it, but I want to look at it further.
What the timetable is for the sale (if it happens) of the REDGroup brands is as follows
The following is an indicative timetable for the sale of REDgroup Retail:
Submit expressions of interest and confidentiality deed Friday 18-Mar
Information memorandum available Monday 21-Mar
Indicative offers due Monday 31-Mar
Data room opens for due diligence Thursday 5-Apr
Final offers due Thursday 14-Apr
So, if anyone bites, the creditor meeting will occur and the creditors will have to vote on the sale.
This is worth looking at, it is the expression of interest request from the Administrators regarding selling all or part of REDGroup.
It has something I been looking for, financials. True it is before tax and interest, but still worthwhile for the sales and marketing strength
http://www.ferrierhodgson.com/en/Current%20Matters/Businesses%20and%20Assets%20for%20Sale/REDgroup%20Retail%20Pty%20Limited%20and%20associated%20companies.aspx