Economy

Midas Australia shuts stores

SmartCompany /

The administrator of stricken car repair chain Midas Australia has closed eight of the company’s 90 stores, with 17 of the company’s 125 staff losing their jobs.

The administrator of stricken car repair chain Midas Australia has closed eight of the company’s 90 stores, with 17 of the company’s 125 staff losing their jobs.

Administrator George Georges of Ferrier Hodgson held a meeting for creditors in Melbourne yesterday, where he revealed the amount owed to unsecured creditors has increased to about $4 million.

National Bank, which is believed to be owed less than $2 million, is the first-ranking secure creditor.

It is estimated that former Coles Myer boss John Fletcher and a group of clients of investment manager Lazard Carnegie Wylie spent around $10 million when they bought into the business in March last year.

Fletcher and the Lazard clients paid off all the company’s debts and bought out several franchisees.

Georges is likely to try to postpone the date of the next creditors’ meeting as he seeks to sell the business. Ferrier Hodgson formally called for expressions of interests yesterday and Georges says he has already received a dozen informal approaches.

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