OrotonGroup feared it was in danger of collapse five months before falling into voluntary administration owing $40 million, raising questions about the company’s disclosure to shareholders.
According to documents filed by Deloitte, which was appointed administrator on November 30, OrotonGroup engaged the accounting firm on June 29 to assess the company’s financial position, with a particular focus on liquidity, and to review agreements with landlords and franchisor Gap.
As part of this work, Deloitte was asked to estimate the outcome for shareholders and creditors in the event the company went into voluntary administration.
Over the next few weeks, OrotonGroup held at least 17 meetings with its advisers, including Deloitte and…
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