CBA faces $ 8.1m charge over Topshop collapse
SELF- STORAGE start- up Spacer has acquired online parking platform Parkhound as it strives to be the dominant player in Australia’s $ 2 billion storage, parking and warehousing market.
Spacer began in 2015 as an online marketplace that connects people with space with those who need space to store any belongings from clothes, documents to boats and cars.
Co- founder Roland Tam says growth in apartment living in dense cities where a twobedroom unit typically has only one car bay has fuelled the need for alternative and cheaper parking.
Parkhound, founded by Aussie entrepreneurs Michael Nuciforo and Robert Crocitti in 2013, has more than 55,000 members. THE Commonwealth Bank is set to be hit with a bad debt charge of up to $ 8.1 million over a loan to failed fashion import Topshop.
A report into the $ 30 million collapse of Topshop and Topman in Australia has also blamed its downfall on poor decisions by its British parent, including trying to push out- ofseason stock on to shoppers here.
Among the key reasons for the collapse identified by administrator Ferrier Hodgson are “counter seasonal product issues due to the Arcadia ‘ stock- push’ franchisee model”.
Arcadia is the multinational fashion empire backed by British billionaire Sir Philip Green whose brands include Topshop and Topman.
The Australian arm operated as a franchisee housed in a company called Austradia, whose directors included Rebel Sports founder Hilton Seskin.
Ferrier Hodgson also singles out an “unfavourable” franchise agreement between Austradia and Arcadia as also dooming the fast fashion import to failure amid fierce competition from rival foreign retailers H& M and Zara.
This included charging high fran- chise fees that inflated Austradia’s cost base, meaning it was “unable to offer price points which appealed to the target customer base”.
The Australian arm of the highprofile fashion import does not escape criticism, with Ferrier Hodgson saying it pushed ahead with a rapid growth strategy despite sales going backwards.
It was also late in rolling out an online shopping portal, the report says.
The CBA was Austradia’s biggest lender, owed $ 12.1 million through a secured loan at the time of the group’s collapse in May.
Ferrier Hodgson says secured creditors could expect to receive 33c to 39c back in the dollar, meaning the CBA would have to write off $ 7.4 million to $ 8.1 million.
Employees will receive their full entitlements but unsecured creditors will receive nothing.
The CBA recognised $ 1.1 billion in bad debts for the year to June.
Alarm bells at the CBA sounding mid last year.
The bank carried out a strategic review of the business at the start of this year and it was put in voluntary administration late in May after Arcadia said it was unwilling to provide any further financial assistance. started