Luxury jewellery retailer Bensimon has collapsed into liquidation, with reported debts totaling close to $7 million.
Bensimon Reatil Group operates the Bensimon Diamonds retail outlet in Melbourne’s Crown Casino, as well as an online retail business.
It’s related company, RR Fine Jewels, trades as Elizabeth Fine Jewellery on Elizabeth Street in the Melbourne CBD.
The businesses entered voluntary administration at the end of May and according to records from the Australian Securities and Investments Commission, a resolution to wind-up the companies was passed at a second meeting of creditors on Friday.
Three companies – Bensimon Retail Group Pty Ltd, Bensimon Pty Ltd and RR Fine Jewels – are now in liquidation, with Gary Fettes and Shane Cremin of Rodgers Reidy managing the liquidation.
According to Jeweller Magazine, which has seen a reports from the voluntary administration, each of the businesses owes substantial debts to unsecured creditors: Bensimon Retail Group owes more then $2.5 million, RR Fine Jewels owes over $4 million and Bensimon owes more than $250,000.
The three companies also reportedly owe more than $2 million to trade creditors and $300,000 to the Australian Tax Office, while Crown Melbourne is owed close to $30,000 in rent for the retail store for April and May.
Jeweller Magazine reports the failure of the business has been attributed to poor sales and the repayment of a loan to a former director, along with the withdrawal of working capital from the businesses and “poor or inadequate” management.
Liquidator Shane Cremin confirmed to SmartCompany this morning the businesses are continuing to trade while the liquidators continue to work towards selling the businesses.
Cremin says the liquidators have had interest from a potential buyer for the Bensimon Diamonds store at Crown Casino, which employs five people.
SmartCompany contacted Bensimon but did not receive a response prior to publication.