- From: The Australian
- April 15, 2011
LEVERAGED buyout firm Pacific Equity Partners has pulled its representatives off the board of collapsed bookseller RedGroup Retail ahead of an expected sale of the business.
PEP yesterday confirmed its nominees, including RedGroup chairman Steven Cain, had quit the business on March 31, following the placement of the business in voluntary administration on February 17.
PEP said the resignations were made in anticipation of either a proposed deed of company arrangement or a sale of the company, and "create a greater alignment between the board and a restructured business potentially emerging from administration".
Gary Dunne, who joined RedGroup in January as managing director of the Angus & Robertson business, has been appointed acting chief executive of RedGroup's Australian operations, which include the A&R and Borders bookstore chains.
Administrators from corporate recovery firm Ferrier Hodgson are currently assessing expressions of interest from potential buyers of the Australian business, as well as for the New Zealand division that includes the Whitcoulls bookstore chain and is being sold separately.
Ferrier last week revealed it had sold 10 Whitcoulls stores operating in NZ airports to Australian retailer LS Travel Retail Pacific for an undisclosed price.
The administrators are also pursuing action in the NSW Supreme Court against a group of 25 A&R franchisees who last week attempted to quit their franchise agreements with the company over a dispute regarding the redemption of gift vouchers.
The administrator is pursuing the franchisees, which are not in administration and have moved to reposition themselves as independent bookstores, over fees they had agreed to pay in return for use of the Angus & Robertson brand.
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