Furniture chain collapses into administration after family liquidates a string of companies
Friday, October 17, 2014/
D.I.M Furniture went into administration this week, the latest in a string of companies to be liquidated by Melbourne’s Dimarelos family.
Glenn Crisp and Malcolm Howell of Jirsch Sutherland were appointed as administrators of D.I.M Furniture, which was owned by Paul Dimarelos, on October 15, 2014.
Crisp declined to comment to SmartCompany but Jirsch Sutherland’s appointment follows the liquidation of at least six companies connected to the Dimarelos family in the past 12 months.
The D.I.M Furniture website has been removed but an archived version of the site describes the business as “100% Australian family owned and operated” with manufacturing and sales offices in Brisbane, Sydney, Melbourne, Perth and Devonport.
The archived website states the group has over 30 years’ experience in the domestic furniture industry, including its own board manufacturing and melamine plant.
D.I.M furniture’s administration follows hot on the heels of the collapse of the Furniture Spot chain in Western Australia.
Furniture Spot’s liquidator Hall Chadwick has launched an investigation into the sale of Furniture Spot shortly before the trading company collapsed owing creditors about $6 million.
The West Australian reports D.I.M. Furniture, owned by Paul Dimarelos, was the only secured creditor of Furniture Spot, claiming a $3 million debt.
Hall Chadwick representatives told a Furniture Spot creditors meeting in July this year that Paul Dimarelos had sold the retail chain to son Peter for $1.7 million in a non-cash transaction.
Furniture Spot’s liquidators warned creditors to expect no payout from the liquidated trading company, which was left with “minimal” assets.
A subsequent investigation by The West Australian found in most of the six businesses liquidated by the Dimarelos family, ownership of the companies has been transferred to third parties shortly before they were wound up.
SmartCompany was unable to contact Peter or Paul Dimarelos and Hall Chadwick did not respond to a request for comment prior to publication.
A creditors meeting for D.I.M Furniture is scheduled for October 24 in Melbourne.