With $2.7 billion in leases looming, Myer has reportedly ruled out voluntary administration. The retailer has $19.9 million in net debt and gearing of about 3 percent, which means it is moving closer to breached fixed charges cover covenants in banking agreements after a 24 percent fall in earnings in the January half.
For its first half the six months to January 27 Myer suffered a net loss of $476.2 million, compared with a $62.8 million profit for the same period a year earlier, making it the biggest loss in its 118-year history.
According to The Australian Financial Review, Myer has said that voluntary administration was not under consideration, while insolvency experts have said that VA was a blunt instrument and would cre…
Read the full article at: http://www.powerretail.com.au/news/another-voluntary-administration-myer-says-no/