OROTON ADMINISTRATORS FAVOUR WILL VICARS RESCUE
OROTON creditors will meet next week to vote on a $25 million rescue plan that will safeguard 350 jobs and hand control of the luxury handbag retailer to major shareholder Will Vicars.
Administrator Deloitte has recommended creditors vote in favour of a deed of company arrangement that would return between 36 and 58 cents in the dollar to creditors of the 80-year-old company, which slipped into administration in November amid declining sales.
The vote will take place at the second creditors meeting in Sydney on March 29. Voluntary Administrator Vaughan Strawbridge said the deal, which could be wrapped up within two months, would ensure a strong and stable future for what he said was a great Australian brand.
“This has been a complex and high profile appointment,” Mr Strawbridge said. “In the interests of creditors, our focus has been on maintaining as much of the group’s operations as possible, including across its extensive retail network.
“The Vicars proposal is superior to other offers received, and ensures the best possible return for creditors via a recapitalised business that will provide ongoing roles for employees, and continuing relationships with this iconic Australian brand for suppliers, landlords and other stakeholders.” Mr Vicars, the co-chief executive of Caledonia Funds Management, owns an 18.2 per cent stake in Oroton.
Oroton went into a trading halt on November 28 with its shares at 43.5 cents, down 85 per cent on a year earlier. It slipped into voluntary administration two days later.