Myer has ruled out placing the beleaguered retailer into voluntary administration to hasten the exit or renegotiation of $2.7 billion in leases.
While Myer has only $19.9 million in net debt and gearing about 3 per cent, the retailer is moving closer to breaching fixed charges cover covenants in banking agreements after a 24 per cent fall in earnings in the January half.
Market sources have suggested Myer could take a leaf out of the playbooks of retailers such as OrotonGroup and SumoSalad and place the company into voluntary administration to void lease agreements and buy time while it renegotiates rents with landlords.
However, a Myer spokesman said VA was not under consideration, while insolvency experts said VA was a “blunt…
Read the full article at: http://www.afr.com/business/retail/myer-rules-out-using-voluntary-administration-to-exit-leases-20180326-h0xzlw
