AU
UPDATED: REDgroup Numbers Spell “Deep Sh&*t”, Store Closures
  • Posted:
  • March 1, 2011
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  • AU
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    1

This just popped up on Twitter – via Bookseller + Publisher

It’s news, and I’m no accountant, but it doesn’t seem like a quick fix…

Ouch:

administrator: RedGroup owes staff $7.8mill, unsecured crditors $44mill and PEP is secured creditor at $118 mill. Store closures likelyless than a minute ago via TweetDeck

 

Key points

  • staff owed $7.8 million
  • unsecured creditors owed $44 million
  • PEP owed $118 million
  • $120 million in stock on hand
  • unredeemed vouchers worth $15 million
  • store closures possible
  • second creditors meeting to be delayed

About Autor:
One Comment
Darryl Adams

2011-03-01 13:08:34 Reply

I am waiting to see if I can get the full report to creditors.

I am beinning to think that my hunch of the debt burden imposed by PEP is the killer was correct.

Unsecured creditors would be every supplier and govt department (with the noticable exception of Super Guarentee which could be part of the unpaid staff costs).

I remember that the assets was in the $100m plus range, and that would include stock in hand and the stake in Kobo.

If it wasn’t that secured debt with PEP, REDGROUP would be in a lot better shape. The cost of servicing that loan alone would be $5m a year (as a wild arse guess).

PEP will get first dibs on the disbusement as well.

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