20/03/2019 - 14:09

Robayne emerges from administration

20/03/2019 - 14:09

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Private equity investors have bought the assets and business of Welshpool-based coatings distributor Robayne, two months after the company was placed into voluntary administration.

Robayne emerges from administration
The new ownership will save more than 60 jobs at Robayne. Photo: Google Earth.

Private equity investors have bought the assets and business of Welshpool-based coatings distributor Robayne, two months after the company was placed into voluntary administration.

The new investors include Robayne’s current general manager, Doug Barber.

The new ownership will save more than 60 jobs at Robayne, which had built up a network of 14 branches across the country.

Three of those branches will be closed, resulting in a small number of job cuts.

When FTI Consulting’s senior managing director, Ian Francis, was appointed administrator in January, Robayne owed creditors about $12 million, including $7 million to secured creditors.

The sale agreement ensures all employee entitlements will be met and It is understood there will be a considerable return to the secured creditors, though the amount was not specified.

Robayne was established in 1974 and generated more than $36 million in revenue in FY2018.

Under its new ownership, the business will continue to trade as Robayne and will continue to represent key suppliers in the automotive and industrial sectors around Australia, representing key paint manufacturers.

The purchaser will review other distribution opportunities for the business.

Mr Barber said Robayne’s staff nationwide are excited by the clear future for the business.

“Our objective is to drive a high standard of service, draw on our technical knowledge, and add to our range of products to ensure we best support our customers’ needs,” Mr Barber said in a statement.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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