29/05/2019 - 14:21

Rosendorff name saved by local jeweller

29/05/2019 - 14:21

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The receivers of Rosendorff struck a deal last night to sell the jewellery business to an unnamed local buyer already in the jewellery business.

Rosendorff name saved by local jeweller
The receivers announced a $9 million liquidation sale at Rosendorff's Hay Street store in May. Photo: Gabriel Oliveira

The receivers of Rosendorff struck a deal last night to sell the jewellery business to an unnamed local buyer already in the jewellery business.

Receivers KordaMentha said today that, under the deal, the jewellery shop would keep the Rosendorff name and retain staff under the new ownership.

KordaMentha partner Richard Tucker said the deal would take two to three weeks to complete and the discounts would continue for that time.

He said the revival of Rosendorff was due to the massive public support the jeweller had received.

The receivers announced a $9 million liquidation sale at Rosendorff's Hay Street store in May, after the 55-year-old jewellery business was placed in receivership in late April.

FTI Consulting was appointed as the administrator on April 29.   

A report compiled by FTI Consulting said it found irregularities in the accounts of business founder Craig Rosendorff, including a $1.8 million shortfall in stock and $170,000 worth of products that weren't paid for. However, there was no suggestion of wrongdoing by Mr Rosendorff.  

The report said the business had been in financial trouble for the last two years, with sales declining since 2011. 

Mr Rosendorff became interested in jewellery after he worked part-time at The Moderne Gift Shoppe on Barrack Street and established a name for himself selling jewellery.

He bought the store a few years later and in 1978 changed the name to Rosendorff.  

The store moved from Barrack Street in 1981 to Trinity Arcade in the Hay Street Mall before shifting to its current location on the western side of the mall.

Mr Rosendorff opened a second store in Garden City, which has subsequently closed.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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