WC Penfold lives to fight another day

Creditors reached an arrangement in June 2004 that saw control of the retailer handed over to a group of investors, the deal entailing the formation of a new company called Buying Group Services. National office products supplier Office Choice owns the largest stake in the company at 48 per cent, and now controls the former warehouse leases of WC Penfolds and is responsible for supplying the remaining retail outlets.

While Office Choice administration manager Max Richie confirms a rationalisation took place that saw the stores not turning a profit (up to eight) being closed down, he asserts that the 16 remaining retail outlets will continue to operate under the WC Penfold title. In addition, the stores that have remained open have reported an improvement in trading performance, with the period of voluntary administration allowing for the resolution of supply-chain issues and a cutting of operating costs.

In related news, after almost a year the administrators of WC Penfold are close to delivering a return to the failed business's unsecured creditors, to which $6.3 million is owed. Deloitte Touche Tohmatsu indicates that a payment of around 3.3 cents in the dollar can be expected, a slight improvement on the meagre returns the creditors faced last year.