Pets Paradise in receivership
In the latest blow to the Paradise Retail Holdings Group which includes Pets Paradise and the Billy Baxter's chain of restaurants, a number of its companies have gone into receivership.
However franchised stores within the group are not in receivership and all franchised and company owned outlets are continuing to trade. The one company owned outlet in the Billy Baxter's chain was closed on Monday 30th July.
Pets Paradise is a retailer and franchised network of pets and pet accessories businesses trading as Pets Paradise, Pet Goods Direct and Pets R Fun and has 25 company owned outlets trading under these names.
The troubles of the pet-focused business have come to a head not long after the appointment of provisional liquidators to the Billy Baxter's Franchising Pty Ltd business. Billy Baxter's allegedly has not paid $1.22m owing to former franchisees following an appeal court verdict.
Deloitte Restructuring Services partners Tim Norman, Sal Algeri and John Greig have been appointed as receivers and managers of a number of companies in the PRH group, and will manage the business under the administrators SellersMuldoonBenton.
In taking control of the group's operations, Tim Norman said "The Group's financial distress has largely been caused by underperforming company operated stores and significant rental exposures from store closures over the last 18 months.
"Both company owned and franchised stores will continue to trade as normal while an urgent assessment of the group's financial position is undertaken.
"A sale of the busines will commence shortly."
Voluntary administrators will outline their initial findings at an upcoming creditors' meeting.