Extension in the bag

TROUBLED luxury handbag retailer Oroton has secured a six-month extension of a $35 million finance package with Westpac.

Oroton’s former director Will Vicars, who holds an 18.2 per cent stake in the retailer, and Westpac have agreed on a put and call arrangement that extends the maturity date of the debt to October, 2018.

The call option enables Vicars Entities to buy all of the Westpac debt any time until one month after April 16, 2018, while the put would allow Westpac to transfer a $20 million working capital component of the facility to Vicars if there is a default.

The funds will be used in the lead-up to Christmas and post-Christmas sales amid Oroton’s ongoing sales slump, with the retailer’s revenue down 11 per cent in the nine months to April 30.