Fifty of the 84 retail stores initially operated by the Allphones group, which went into liquidation in February, are continuing to trade under new owners.
The retention of the 50 stores has resulted in around two thirds of the 446 staff employed by Allphones securing ongoing employment with the new owners.
Administrators PPB Advisory have not confirmed who the new owners are, but say that 34 stores will be closed.
Creditors meeting in Sydney on 5 April voted in favour of six Deeds of Company Arrangement (DOCAs) for the Allphones Group covering eight of the nine companies in voluntary administration - with the ninth having no creditors.
{loadposition peter}“PBS says it worked with Allphones’ major shareholder, Skidmore Retail Group, to agree funding across the DOCAs totalling $2.2 million - in addition to funding of $0.9 million provided by Skidmore during the administration which enabled most stores to continue to trade, and helped increase realisations to contribute towards creditor payments.
The terms of the DOCAs enabled full payment of entitlements to all 446 Allphones’ employees and full payment of net commissions to licensees and franchisees.
PBS Advisory’s Philip Carter of PPB Advisory said the approval of the DOCAs is a result of “all parties collaborating to achieve the best outcome for creditors, including store operators and employees”.
This was made possible through the support of the major shareholder, Skidmore, with funding used to transition many stores to new operators, and preserve the majority of jobs in the process.
“The agreement reached also ensures a better outcome for all creditors, and we are particularly pleased that we will now be able to pay out all employee entitlements in full.”