In the finest tradition of ‘wealth transfer’, here’s the end of the line for those who subsidized the debt-gorged Private Equity Partners ‘foray’ into book retailing.
REDgroup: A ‘company’ (harrump!) conceived, badly-operated and then run into the ground by Australian accountants, taking with it a dollop of cash, milked by the ‘administrators’ then buried in a pauper’s grave.
Question: How did the NZ operation ‘debt’ (NZ population 4M) end up being comparable to the Australian operation (Australia population: 20M)? Gee, do you think it’s possible money was being siphoned off to Aussie, perchance, and debt accumulated here? What a concept!
Now, NZ publishers and distributers, and other unsecured (cough) ‘creditors’ depending on their contracts, have been left wearing 3c in the dollar, according to the NZ Herald. It’s a different picture for ‘secured creditor’ PEP, huh?
I wonder how many businesses are racing to get into bed with any PEP entity now. Probably not many.