By Dominic Powell and Emma Koehn.
The administrators of embattled fashion retailer SurfStitch say a restructure is on the cards that could see the company’s shares re-listed on the Australian Securities Exchange to salvage some value for investors.
The company placed two companies, including its listed entity, into voluntary administration at the end of August after a period marked by what it called several “significant” challenges.
The Australian reports administrators FTI Consulting confirmed in a press conference after the company’s first creditors’ meeting on Tuesday that the business had already received a proposal for a deed of company arrangement.
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The proposal would include re-listing stock on the ASX, which administrator John Park said would be “very much a desired outcome”.
Rates on hold as RBA warns on household debt
The Reserve Bank kept interest rates on hold on Tuesday, and it looks as though 1.5% will be as low as it goes for some time.
Speaking at the Reserve Bank Board Dinner in Brisbane last night, RBA Governor Philip Lowe said the board has been patient and not sought to “overly engineer or fine tune things”, explaining the balance that has been struck over the past year on rates has been appropriate.
Lowe also flagged the potential challenges caused by household debts, saying the RBA was cautious about enticing more borrowing at even lower interest rates, noting there are “already high levels of debt”.
“Our judgement has been that it was not in the public interest to encourage an already highly indebted household sector to borrow even more. More borrowing might have helped today, but it could come at a future cost,” he said.
Queensland farewells plastic bags
Plastic bags will be banned in the state of Queensland from the middle of next year, after the state government passed a bill overnight preventing shoppers from being able to receive the bags from retailers.
The ABC reports the legislation passed with bipartisan support, with the new rules specifying retailers that ignore the ban could face a $3,000 fine. The ban also applies to biodegradable bags.
Additionally, the state has introduced new ways for Queensland residents to receive cash back for recylable bottles and cans, much like systems which already exist in South Australia and the Northern Territory.
“By passing this bill we say to our young people that we value our wildlife, especially our marine creatures like turtles, sea birds and dugongs,” Environment Minister Steven Miles told the ABC.
“An estimated 2.4 billion beverage containers and one billion lightweight plastic shopping bags are used in Queensland every year … these are ending up in our waterways and killing and maiming our native animals.”