Administrators flag possible Roger David rescue
The closing down sale that Roger David administrators announced last week was intended to raise a lot of cash fast to help pay employee entitlements and creditors in what looked to be the final days of the 76-year-old menswear chain.
But to the surprise of staff and administrators alike, the sale has “turned into something much bigger than that”, according to Craig Shepard of KordaMentha Restructuring.
Sales have more than doubled in the past week, as customers have responded to the 50 per cent discount, showing an “amazing wave of support and loyalty” for the longtime Aussie brand, Shepard said.
Now, there is a possibility that Roger David will be rescued, as buyers take a second look after seeing the outpouring of support for the brand on social media and in stores.
Shepard said that expressions of interest have been coming from parties who were shying away from an acquisition a few weeks ago.
“We will assess all the options and have an update for creditors at their first meeting next week,” he said.
Directors of Roger David placed the group into administration last Thursday, citing the challenges of dealing with foreign competition, fixed costs and soft retail conditions. The company had been seeking other options, including a sale, but there was little interest at that stage.
IR has requested comment from the administrators about the likelihood of a rescue, but had not received a reply at the time of this writing.