Firm in Power battle: Wholesaler snaps up chain before liquidation

GEELONG clothing wholesaler Stage II is battling a liquidator over the $800,000 value of a recently acquired retail chain, according to an online business website.
Stage II “snapped up” four Max Power retail stores just months before the business went into liquidation, SmartCompany reported.
South Geelong-based Stage II was also a creditor of the failed retail chain.
Stage II confirmed it took over four Max Power stores in DFO shopping centres in Brisbane, Essendon, Cheltenham and South Wharf around the end of July.
But SmartCompany said liquidator Paul Vartelas, of BK Taylor and Co, would investigate the acquisition.
“I’ll be knocking on the door first and saying ‘I need more details’,” Mr Vartelas told the website.
He said Stage II reduced the amount of debt Max Power owed it as a trade creditor to take over the chain.
But the arrangement could disadvantage other creditors who could miss out on access to as much as $800,000, Mr Vartelas warned.
He said the collapse of Max Power was linked to trading difficulties for discount department chain DFO.
Stage II co-founder Aaron Pritchard told the website he had yet to contact the liquidator.
Mr Pritchard said Stage II believed its opportunity for future growth in retail lay in plans to open a store in Hobart under a new name, Laundrie.
The company also planned to open another Laundrie store in Launceston next month.
Mr Pritchard said the Max Power stores could be renamed Laundrie “down the track”.
Stage II and Mr Vartelas had not returned calls for comment when the Independent went to press.