Melbourne-based fashion brands company Mercury Brands Group has been put up for sale after being placed into the hands of receivers.
Receivers and managers Ian Carson and Craig Crosby of insolvency firm PPB launched the sales campaign for the company this morning, and are seeking “urgent” expressions of interest by 29 September.
Mercury Brands Group owns more than 20 lifestyle brands, including No Fear, French Kitty, Kangol and Rochford Australia. The company, which was established in 1982, has annual turnover of $28 million, according to information released as part of the advertising campaign.
The company was previously a subsidiary of Mercury Brands Limited, which is listed on the Australian Securities Exchange.
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MBL decided to put Mercury Brands Group into voluntary administration late last week, after a promised $2 million investment from a company called Biron Capital failed to eventuate. The meant a new $3.5 million funding facility also fell through.
However, while the Mercury Brands Group subsidiary was placed in the hands of administrators, MBL has not collapsed. But its shares have been suspended from trade and its future looks uncertain, given Mercury Brand Group was the source of all of the company’s revenue.
MBL’s company secretary Justyn Stedwell was not available to comment prior to publication.
MBL has had a difficult few years. The company, which formerly traded as Austin Group, was plunged into chaos a year after its major shareholder, Hawkswood Investments, was caught up in the collapse of margin lender Opes Prime.