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A mid-tier firm has successfully facilitated the sale of the MyHouse retail business after it went into voluntary administration at the height of the COVID-19 crisis.
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Mid-tier facilitates MyHouse sale
12 June 2020
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William Buck has completed the sale of the MyHouse retail business, including 23 stores and an online presence, to Global Retail Brands Australia Pty Ltd (GRB).
Directors Michael Brereton and Sean Wengel of William Buck Restructuring & Insolvency, appointed as administrators in mid-March, said the sale would secure employment for over 150 staff, who will transition with the business to GRB.
GRB, a privately owned group, controlled by Steve Lew, has over 170 stores across Australia.
Commenting on the deal, Mr Brereton and Mr Wengel said they made the decision to keep the store doors open during the administration, despite many retail businesses choosing to remain closed during the COVID-19 restrictions.
“We decided it was in the best interests of creditors and other stakeholders to continue to trade the business while exploring opportunities for sale,” Mr Brereton said.
“This decision has been fully vindicated, with MyHouse sales while under administration exceeding $7 million. In addition, MyHouse experienced year-on-year growth in sales during the administration period, despite the difficult retail conditions exacerbated by COVID-19.
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“If we had closed the doors and transitioned to an online-only business, we expect that the employees would have received less than 10 cents in the dollar from the MyHouse administration.”
Both administrators also noted that the sale would ensure the survival of the 60-year-old MyHouse business.
“Now, we expect that all employees will either have a new job with GRB or will have their employee entitlements paid out in full,” Mr Brereton said.
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