License article

OrotonGroup collapses into administration, joining Aussie retail bloodbath

90 reading now
Show comments

Iconic handbag retailer?OrotonGroup?is up for sale after?becoming?the latest casualty in Australia's retail bloodbath and collapsing into voluntary administration.??

The 79-year-old?company revealed on Thursday that an eight-month strategic review?which looked to sell,?privatise, recapitalise or refinance the business had failed to find a viable option to secure its future.??

Up Next

ACCC: Telstra was 'misleading'

Video duration

More BusinessDay Videos

Oroton earnings report

Clothing and accessories retailer Oroton withholds its dividend as profit halves.

About 60 Oroton stores would continue to trade as usual while administrators?Deloitte Restructuring Services pursue a sale or a recapitalisation, the company said.?

"The board is disappointed that it has had to take this step after running such a comprehensive process," said interim?chief executive?Ross Lane,?whose grandfather Boyd Lane founded Oroton in 1938.

"However ... it is apparent that voluntary administration is necessary to protect the Oroton business and the future of this iconic Australian brand."

Oroton has suffered falling sales in recent years and ran at a $14.2 million loss in 2017.


The?company's shares, which went into a trading halt on Tuesday while the board?finalised the result of its review, had fallen from?$7.80 in early 2013?to $2.44 a year ago. On Monday, they closed at just?43¢.

Administrator?Vaughan Strawbridge said he and his?colleague?Glen Kanevsky would be focused on continuing to operate the business as they seek to sell or recapitalise the company.?

Restructuring the group was also a possibility. "Our ambition is that a stronger Oroton business will emerge from this process," Mr Strawbridge said.?

Oroton joins a string of mid-sized fashion retailers to collapse over the past 18 months, with Marcs, David Lawrence, Herringbone, Rhodes & Beckett,?Payless?Shoes and Pumpkin Patch all going under.??

Oroton said in August that it would close its?six Gap?franchise clothing stores so it could focus on its core handbag brand.?

The company's stock is tightly held, with the founding Lane family controlling 21 per cent of shares while?fund manager and long-time company backer?Will?Vicars, of Sydney-based firm Caledonia, owns?18.2 per cent of shares.?

Mr Vicars offered up to?$3 million in credit support?to Oroton in June as it underwent the strategic review, led by investment bank Moelis?& Co.??

Gazal Corporation, the listed wholesaler of Calvin Klein, Tommy Hilfiger, Van Heusen and?Pierre Cardin apparel in Australia,?bought 7.3 per cent of Oroton in July.?

A privatisation bid by the Lane family or Mr Vicars, or a takeover from Gazal, were all floated as possible outcomes from the review.?

The company had net debt of $5.4 million at the end of FY17, and a market capitalisation of $18.3 million at its last share price. Only 31 per cent of its shares were in free float.?


<acronym id="Uspxjih"></acronym>
<acronym id="Uspxjih"></acronym><tr id="Uspxjih"><optgroup id="Uspxjih"></optgroup></tr>
<acronym id="Uspxjih"><small id="Uspxjih"></small></acronym>
<rt id="Uspxjih"></rt>
<tr id="Uspxjih"><optgroup id="Uspxjih"></optgroup></tr><tr id="Uspxjih"><optgroup id="Uspxjih"></optgroup></tr>
  • 1415411509 2018-03-17
  • 9051721508 2018-03-17
  • 4708461507 2018-03-17
  • 914611506 2018-03-17
  • 655101505 2018-03-17
  • 8291531504 2018-03-17
  • 2532681503 2018-03-17
  • 2246611502 2018-03-16
  • 9762941501 2018-03-16
  • 664501500 2018-03-16
  • 461501499 2018-03-16
  • 6799691498 2018-03-16
  • 334731497 2018-03-16
  • 5826151496 2018-03-15
  • 9214641495 2018-03-15
  • 392141494 2018-03-15
  • 7693241493 2018-03-15
  • 4562021492 2018-03-15
  • 7071431491 2018-03-15
  • 5938361490 2018-03-14
  • cheap jerseys | wholesale jerseys |