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

The administrators of WC Penfold Limited, Mr David Lombe and Mr John Greig of Deloitte, have received 62 expressions of interest in the assets of the business, either in whole or in part.

“We are very encouraged by the level of interest in the business,” Mr Lombe said.

“We will now provide interested parties with an information memorandum detailing the financial position and strategic plan of the company.

“Interested parties will have until early April to submit a non-binding indicative offer,” he said.

The assets for sale include:
• 30 stores in city and suburban areas, Sydney, Melbourne, Brisbane, Adelaide and Canberra
• Warehouse and distribution centre capacity
• Listed Public Company
• Customer lists
• Internet sales
• Brand name

“In the meantime we are continuing to restructure the business and implement cost reduction strategies to improve the performance of the business,” Mr Lombe said.

Part of the cost reduction strategies have involved the need to reduce excess staff numbers and close two unprofitable stores, Mary Street, Brisbane and Moorabbin, Victoria.

“WC Penfold customers will be pleased to know the company is still making deliveries by horse and cart,” he said.

On Wednesday, Mr Lombe and Mr Greig were granted approval from the Supreme Court of New South Wales to extend the convening period for the second meeting of creditors until Friday, 28 May 2004 to allow them to adequately pursue options for resurrecting the business.

“We are working hard to secure the future of the company for the benefit of creditors, employees, shareholders and customers.

 

For more information visit our Businesses Under Administration section.