The stock and intellectual property of of Homemakers North and its related entities is for sale, after the companies were placed in voluntary administration earlier this month.
Homemakers North, which has retail member stores in Queensland and northern New South Wales, entered voluntary administration on November 17, along with two related entities, TGH Group Holdings and TGH Floor Coverings.
However, stores in the Homemakers group are independently owned and as such are not in voluntary administration.
According to its website, Homemakers North was established in 1972 as an umbrella brand for independently owned furniture, bedding and flooring retailers. Homemakers North is connected to the Sleepzone brand, which was launched in January 2004, and also connected to the Floorzone brand.
Tim Michael and William Colwell of Ferrier Hodgson were appointed to manage the administration and the first meeting of creditors took place today.
Michael and Colwell told SmartCompany this morning the directors of Homemakers North decided to appoint administrators because the group was or was likely to be insolvent in the near future. The administrators said Homemakers North co-ordinated the sale of stock to each of its member stores and allowed them to use the group’s IP and trademarks. The group also provided marketing services to the stores.
The administrators said the Homemakers North group was turning over approximately $5 million at the time of their appointment and had six full-time employees.
In a letter sent to members on November 23, which has been seen by SmartCompany, Michael said he has received expressions of interest from a number of parties for the sale of the group’s stock and/or intellectual property.
Michael said he was considering offers for either all of the furniture stock, all of the flooring stock, or a combined offer for all of the furniture and flooring stock together, but would not be considering offers for parts of the stock.
He also informed members of the group that back orders placed prior to his appointment would not be processed and would not be taking liability for stock that is in possession of an overseas distribution, Seabridge Group Australia, which is owed funds by the Homemakers North group.
SmartCompany contacted Homemakers North but did not receive a response prior to publication. Homemakers South is a separate legal entity and is not connected to the voluntary administration.
*This article was updated at 9.46am on November 27 to correct several factual errors and to remove incorrect references to Homemakers Australia.