Retail advisory and consultancy Orex Consulting, which is run by industry veteran Rob Lake, has entered voluntary administration in order to refinance as it attempts to deal with a looming tax bill.
Peter Vince and Kylie Wright of Vince & Associates have been appointed as the administrators of the company, which also trades as Orex Recruiters, and will control the company as it continues to operate over the next few weeks during the firm’s investigation.
Lake says the situation is temporary, and is designed to help the company sort out financial problems which arose as part of the downturn in retail.
“It’s a temporary thing for five weeks as we sort out a tax debt. We’ve got to go through a period of administration while we refinance the company,” he says. “This has been the situation for over a year, it’s an issue of a shortage in funds, when retailing hasn’t been doing as much activity.”
But despite the appointment, Lake says he is confident the company will emerge stronger and that the main issue is refinancing through the bank. “I’m still around and we will continue trading as usual.”
Wright confirms the financial difficulties and says an investigation is currently underway to determine the main causes of the company’s situation.
“Obviously the company has some financial difficulties, the starting point of any administration appointment. But our investigations are still continuing, and during the course of that investigation we’ll determine the root causes.”
Wright says a report is currently being compiled regarding the company’s situation and that it will be released after Easter.
“That will summarise all of our investigations. It’s a bit difficult to speak at all about a timeframe because any voluntary administration is tight, and we’re doing a lot as we go. The company is trading under control of administrators.”
But Wright did not necessarily share Lake’s optimism, saying she could not confirm whether the company would continue trading following the period of administration.
“It’s too difficult to say. It will depend on whether or not a deed of company arrangement is proposed, and whether that is reviewed and creditors can be provided with an option that is the best outcome for everyone involved.”
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
