Contact: Alison Davies
Deloitte Touche Tohmatsu
Media and Communications Manager
02 9322 7731

The directors of WC Penfold Limited have today appointed Mr John Greig and Mr David Lombe of Deloitte as Voluntary Administrators of the company on the basis that the company is insolvent or likely to become insolvent.

WC Penfold Limited is Australia’s oldest retail office products group with 32 stores and a distribution centre and approximately 150 employees across NSW, ACT, Victoria, Queensland and South Australia.

Administrator, Mr John Greig, said he would be undertaking an immediate evaluation of the company’s financial position to determine its viability.

“The business will trade as normal and stores will remain open while we conduct our evaluation,” Mr Greig said.

“Our initial understanding is that the company owes approximately $11 million to in excess of 420 creditors.

Joint administrator, Mr David Lombe, said “Our aim will be to determine whether the company can be restructured to improve its long term performance, in a way that serves the best interest of creditors.”

“We will be looking at all possible options to secure the future of the company, including a restructure or a possible sale.”

“The directors have already agreed to sell the company’s remaining holding in printing subsidiary, Penfold Buscombe Limited, for a total of $2,500,000.

“We expect to hold the first meeting of creditors in Sydney on Monday, 15 March 2004,” Mr Lombe said.

The company, which is listed on the Australian Stock Exchange, had its shares suspended on 1 March 2004.