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Colorado Group slips into administration
01 Apr '11
2 min read
Following a week of tiff with the lenders demanding immediate clearance of their outstanding dues amounting to $230 million Colorado Group, a clothing and footwear firm was officially placed under administration.
A few days back, the company's board and management submitted a proposal together with KPMG, the firm's adviser. The proposal detailed a plan which could have helped the management to hold on to the company and would have even guaranteed higher returns to the lenders. But regrettably, adequate number of lenders did not back, either of the proposals, the company revealed.
The firm which was acquired by Affinity Equity Partners in 2007 at a cost of $430 million was ailing since last year on account of weak consumer response and bad financial conditions which were proving detrimental to its bottom line.
In the initial phases of administration, the probable administrators and receivers would look forward to find ways to realise value from the firm's assets and may even deliberate on shutting down a few of the company's 430 outlets operational in New Zealand and Australia.
The firm has in its portfolio a collection of consumer clothing and shoe brands like Jag, Ferrari, Colorado, Diana, Williams and Mathers, which possibly may be sold to interested parties and the releases thereof may be utilized to pay off the outstanding loans of the company.
A few days back, the company's board and management submitted a proposal together with KPMG, the firm's adviser. The proposal detailed a plan which could have helped the management to hold on to the company and would have even guaranteed higher returns to the lenders. But regrettably, adequate number of lenders did not back, either of the proposals, the company revealed.
The firm which was acquired by Affinity Equity Partners in 2007 at a cost of $430 million was ailing since last year on account of weak consumer response and bad financial conditions which were proving detrimental to its bottom line.
In the initial phases of administration, the probable administrators and receivers would look forward to find ways to realise value from the firm's assets and may even deliberate on shutting down a few of the company's 430 outlets operational in New Zealand and Australia.
The firm has in its portfolio a collection of consumer clothing and shoe brands like Jag, Ferrari, Colorado, Diana, Williams and Mathers, which possibly may be sold to interested parties and the releases thereof may be utilized to pay off the outstanding loans of the company.
Fibre2fashion News Desk - India
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