The entity which ran the Perth Fashion Festival for 20 years, before operations were passed to the Fashion Council WA, has entered administration owing $819,000, with owners Mariella Harvey-Hanrahan and Tony Sage planning a deed of company arrangement.
Cameron Shaw and Richard Albarran of Hall Chadwick were appointed to Perth Fashion Festival Pty Ltd today.
It follows months of pressure on the entity, which had been unable to pay creditors.
This year, Fashion Council WA ran the festival in-house, and the PFF entity had licensed the festival’s intellectual property to the council for a fee.
It is understood the council will retain the rights to continue running the program.
“At this point in time, the administrators are assessing the financial position of the company,” according to a statement by Hall Chadwick.
“It is understood 104 creditors are owed approximately $819,000.
“An initial notice to creditors is currently being prepared which will include details of the initial meeting of creditors, to be held on Thursday, 28 November 2019.”
Ms Harvey-Hanrahan and Mr Sage said they thanked creditors for ongoing support.
“As joint directors of the Perth Fashion Festival Pty Ltd, we have been trying to secure a repayment agreement with all PFF creditors for some time,” they said in a statement.
“Unfortunately, this has not been achievable as a small number of creditors were not prepared to enter into a payment agreement and funds that are owed to PFF by a major debtor have, as yet, not been received.
“Consequently, we have placed the company into voluntary administration and appointed Hall Chadwick as Administrators.
“One of the possible outcomes of the Voluntary Administration process is that we can propose a settlement with creditors through a Deed of Company Arrangement.
“If the proposal is agreed by the majority of creditors, then the Deed of Arrangement is binding on all creditors.
“During this whole process, we – along with Sentinel Corporate Advisory and other parties - have been working with potential investors to recapitalise the company.
“The 2019 Perth Fashion Festival was managed and run by Fashion Council WA, which holds the rights to run the event under licence to the PFF.
“So the administration process can run its course, we will not be making any further comment.”
