Contact: Alison Davies
Deloitte
Media Relations
+61 (0) 2 9322 7731

The receivers of Sam’s Seafood, Mr John Greig and David Lombe of Deloitte, are offering the Sam’s business for sale and calling for expressions of interest from potential buyers.

Sam’s Seafood distributes and processes a wide range of fresh and frozen seafood for the local and export markets.  In addition, Sam’s operated restaurants on the Gold Coast and Brisbane, as well as a chain of fast food franchises located in Queensland and New South Wales.

Mr Greig said during his initial investigation into the business he uncovered significant stock shortfalls which had compromised his ability to trade the business in the short term.

“There appears to have been a significant over-statement in the carrying value of stock for some time in the accounts of Sam’s Seafood Hamilton Limited, a subsidiary of the listed Sam’s Seafood Holdings,” Mr Greig said.

“Stock on hand in the December and March management accounts had a carrying value of $14.6m and $14.1m respectively, but a full stock take found actual stock on hand was only $1m.

“The value of stock in the December management accounts represents the majority of the amount of stock disclosed in the Group’s half year accounts to 31 December 2004 of $15.05m lodged with the Australian Stock Exchange on 28 February 2005.

“The matter appears to relate to accounting errors and has therefore been referred to the Australian Securities and Investment Commission,” Mr Greig said.

“Our investigation into the business also uncovered several underperforming subsidiaries which prompted the closure of thirteen Sam’s owned and operated fish and chip takeaway stores and two restaurants - Sam’s on Suttons at Redcliffe and Sam’s Pier.

“We continue to operate Sam’s fresh seafood retail stores and wholesale operations and have received strong support from suppliers and employees.
“However, as a result of the stock shortfall and store closures, we are seeking to sell the Sam’s business as quickly as possible, which is in the best interest of all stakeholders.

“I will be formally advertising the business for sale this week and moving quickly to negotiate with interested parties.

“I have already received expressions of interest in the business, which is encouraging.

“I hope to be able to sell the business as soon as possible,” Mr Greig said.