Re­tailer placed in re­ceiver­ship

Townsville Bulletin - - Investor - by Martin Rasini martin. rasini@ townsville­bul­letin. com. au

CLOTH­ING and footwear re­tailer Colorado Group has been placed in re­ceiver­ship at the be­hest of cred­i­tors owed $ 400 mil­lion.

The com­pany, which op­er­ates a chain of 434 stores across Aus­tralian and New Zealand, is in the hands of James Ste­wart, Bren­dan Richards and Will Col­well, part­ners at cor­po­rate re­cov­ery spe­cial­ist Fer­rier Hodg­son.

The move was an­nounced by the re­ceivers yes­ter­day and fol­lowed an ear­lier de­ci­sion by Colorado’s board to ap­point vol­un­tary ad­mi­nis- tra­tors. Colorado houses five well - known spe­cial­ity brands – JAG, Diana Fer­rari and Colorado, Mathers and Wil­liams.

Re­ceiver James Ste­wart said the group had suf­fered a de­cline in per­for­mance, largely driven by poor per­for­mance of the Colorado­branded stores.

Mr Ste­wart said other brands were per­form­ing well, gi ven mar­ket con­di­tions.

‘‘ Mathers and Wil­liams are the largest spe­cial­ity footwear brands in Aus­tralia, while JAG and Diana Fer­rari are also very good busi­nesses,’’ he said.

Mr Ste­wart said all em­ployee en­ti­tle­ments were pro­tected and that all gift­cards and lay-bys would be hon­oured.

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