Warrnambool Co-operative Society Limited
Appointment Type: Voluntary Administration Appointment Date: 23/10/2007 ACN: 82 504 011 521
Appointee(s):
James Stewart | Office: Melbourne Case Contact: Craig Hunter Phone: +61 3 9600 4922 Fax: +61 3 9642 5887
Email: craig.hunter@fh.com.au |
Background Information:
The retail environment in Warrnambool has become highly competitive in recent years with the establishment of big chain retail outlets which have had a significant impact on the CO-OP’s core business.
The competitive clout of these major outlets combined with the impact of the ongoing drought on the rural business has taken its toll on the CO-OP. The Board has adopted a number of initiatives to turn the business around, but unfortunately these were not enough to underpin the CO-OP’s long term sustainability.
A review of the CO-OP’s September results made it clear that the forecasts for FY08 are unlikely to be achieved and further funding would be required to meet its cashflow needs in the future. After due consideration the Board was not willing to allow the further erosion of member equity and took the decision to appoint Administrators in order to protect the interests of members, staff and the business.
Current Status and Actions Required by Creditors:
All trading operations of the CO-OP have ceased. All enquires with regard to the operation of the Colac rural and hardware store from 1 March 2008 should now be directed to Mr Mark Slater of The Co-op Colac. Suppliers are requested to close their trading accounts for the Administration of the CO-OP and to forward copies of their outstanding invoices to our office. Creditors who have not already submitted a Formal Proof of Debt Form are requested to do so and return it to our office together with any supporting documents.
Next Milestone and Estimated Timetable:
Creditors meeting dated 21 May 2008.
Likely Outcome for Creditors and Timetable:
The Deed Administrators provisional observations indicate that there is a reasonable prospect of creditors receiving a return in excess of 75 cents in the dollar.