Voluntary Administration
The Situation
SV Partners were appointed Voluntary Administrators to a company that owned and operated two cafe franchise stores in Queensland. One in Clifford Gardens and the other in Sherwood. A contract was executed prior to our appointment for the Clifford Gardens store.
The Solution
Due to an existing franchisee contract on the Clifford Gardens store, we continued trading for an extended period of time to allow settlement. In addition, we traded the Sherwood store with a view to selling it as a going concern.
There were no purchasers with suitable offers so we coordinated with the franchisor to hand the store back. As part of the agreement, the franchisor took on the employees and premises lease.
The Outcome
Through the voluntary administration process, we enabled a large return to priority creditors for outstanding superannuation and payment of outstanding franchise fees.