While Retravision’s business is being wound up, nine of its former stores are rebadging as ‘Appliance Spot’, Appliance Connexion Ltd (ACL)’s new retail brand. Stores in the 100% chain are also ACL members, and an additional 14 Retravision stores have changed their name to 100%.
“We’re in discussion with several more. This brings the 100% brand to 68 stores nationwide,” says Peter Drummond, ACL’s executive director and former chairman, who assumed chief executive duties after CEO Wayne Burton was struck and killed by a car in February.
Retravision NZ comprised 44 stores prior to the merger, he says. That included 35 Retravision-branded electronics stores, as well as those operating under their own names. Of the 44 Retravision member stores, five didn’t join ACL.
“These have gone out on their own, closed, or joined a smaller group,” says Drummond.
Reseller News understands at least one of these stores have joined Betta Electrical.
Retravision became insolvent when a member, Stereo World, went bust in 2008, owing its parent company around $1 million.
Appliance Connexion was formed in 1998, although its buying group has been operating here since 1983. As a result of the Retravision merger, ACL now has more than 120 stores. Members are shareholders of the company and buy through its terms of trade, says Drummond. ACL is a member of Narta NZ, a large home appliance and electrical buying group. Its New Zealand members also include Magness Benrow Appliances, L V Martin and The Appliance Shed. According to Retravision’s records, says Chris McCullagh, senior manager of PKF Corporate Recovery and Insolvency, the company charged with its liquidation, none of the IT trade creditors listed in its initial report is owed a substantial amount. These include Acer, Canon, Equipment Finance, Morning Star, Phillips, Telecom, Techtronic, VAX and Vodafone.
“Canon and Equipment Finance may be owed amounts in relation to office equipment leased to the company,” says McCullagh, “but as yet these claims have not been quantified.”
PKF hasn’t undertaken an audit of Retravision and notes in its report that the company retains the right to amend particulars as a result. Further six-monthly progress reports are required until the liquidation is concluded. He adds that there are insufficient funds remaining to pay the member’s rebates and the few remaining creditors in full. PKF currently estimates Retravision creditors will receive approximately 50 cents in the dollar.