Strathfield Group in administration

Brian Silvia and Andrew Cummins of BRI Ferrier were appointed as voluntary administrators in late January.

In a statement to the media, Strathfield’s board claimed the worsening economic conditions, consumer demand and generally falling asset values forced it to carry out a review of the company’s affairs.

“[The review] has revealed substantial impairments of Goodwill, Receivables and Inventory values, that subject to final directors’ and auditor review, will be recognised in its half year accounts, which is likely to result in negative Assets and shareholder’s funds position as at 31 December 2008,” stated the board.

It claimed the company’s less than satisfactory Christmas and post-Christmas trading results and the continued negative and worsening retail outlook for at least the first half of this year.

However the company is hopeful to emerge from voluntary administration under a deed of company arrangement, which may be put up by the company with the funding support of its largest shareholder.

finance group strathfield