SMB Advisory was appointed as liquidator on October 3, but met with Harrolds management in May, when it determined that a “liquidation scenario was the likely path forward”.
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“I confirm that my investigations into the affairs of the Harrolds Group will include whether it traded whilst insolvent and whether the liquidator has a resulting claim against the director to compensate the companies for an amount equal to the loss or damage suffered,” SMB Advisory managing principal Andrew MacNeill told this masthead.
MacNeill said he had been informed by Harrolds Company’s director Ross Poulakis that the majority of stock had been sold before liquidation during a sale conducted by a third party, with the proceeds paid into the Harrolds Group’s bank account. About 730 items remain unsold, according to MacNeill.
The liquidator said he would also examine a series of multimillion-dollar intercompany loans made between companies controlled by the Harrolds Group.
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“Whilst the director estimates no recovery is expected from the related party loan accounts, I will call for the related parties to repay their respective loan accounts in full,” MacNeill said.
He said his investigation was still at a preliminary stage and…
