Retail Adventures founder Jan Cameron has won back control of her business nearly a year after the company collapsed into administration, with creditors voting in favour of a new deed of company arrangement yesterday.
The move finalises a significant period of the company’s history, during which it has faced significant opposition. Earlier this month, administrators Deloitte argued creditors should reject the deal, and have even claimed the company could have traded while insolvent.
Retail Adventures also faces the prospect of litigation, with IMF Australia having confirmed an investigation of this option within the past year. Yesterday’s vote is still open to legal contest.
Creditors voted yesterday to approve the deal, which will see them receive between five and six cents for every dollar owed by the company. With around $114 million owed by the company, that means a $5.5 million return to creditors.
Retail Adventures, now known as the Discount Superstore Group was contacted by SmartCompany this morning, but its office was unattended.
The purchase comes after Deloitte said earlier this month creditors should vote against Cameron’s plan, in favour of a liquidation plan which would see creditors receive between 22c and 48c in the dollar.
Deloitte also warned the new deed of company arrangement would reduce the company’s risk of being targeted by legal action.
The vote comes seven months after Jane Cameron paid $60 million to purchase the assets of Retail Adventures through her Discount Superstores Group vehicle.
The company’s financial structure was brought into question in April, when administrators informed a meeting of creditors there was “compelling evidence the company traded whilst insolvent”.
Cameron was the sole shareholder of the company when it was placed in administration.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
