Administrators back at SumoSalad HQ
The financial advisory and restructuring firm Ferrier Hodgson have been appointed voluntary administrators of the parent company of the SumoSalad Group.
“The administrators now control the group’s operations and are assessing the group’s financial position,” Kelly advised SumoSalad’s creditors.
Morgan Kelly and Peter Golhard were appointed voluntary administrators of the Sumo Group HQ on July 18 pursuant to Section 436A of the Corporations Act 2001, Ross Greenwood's 2GB Money News reported.
The administrators indicated "the group's operations are continuing to trade the business in the ordinary course."
The company’s first meeting of creditors will be July 30.
A second meeting of creditors will be held on or before August 22 unless the court extends the date.
It is business as usual for the shop outlets, just the HQ which is needing a recapitalisation.
Last June SumoSalad put two of its companies into administration in order to force its retail landlords to negotiate over lease payments. Last July the fast-food franchisee had reportedly managed to negotiate lower rents from reluctant landlord Westfield through its tactic of insolvency laws.
Its founder Luke Baylis put two of its companies, Sumo Westfield Leasing Pty Ltd and Sumo Leasing Pty Ltd, which held leases of about 23 SumoSalad outlets, into administration last June saying it would not have an impact on the rest of the network's 104 stores still continuing with business as usual.
This week Baylis told Inside Retail that while the operations of the business would be in the hands of the administrators, he expected the Sumo fresh food stores to continue trading as normal while the business is restructured – a process that is likely to take between 35 and 60 days.
There are more than two companies in administration this time:
Sumo Group Australia Pty Limited (ACN 107852335)
Sumo IP Holdings Pty Ltd (ACN 147743084)
Sumo Salad (Frenchising) Ply Limited (ACN 110 387 061)
Sumo Marketing Fund Pty Ltd (ACN 1,6920202)
SumoSalad Store Development Pty Ltd (ACN 106886800)
Sumo Salad Group Services Ply Ltd (ACN 142590707)
SumoSalad (Corporate Stores) Ply Limited (ACN 106886793)
Sumo Salad Leasing 2 Pty Limited (ACN 148842433)
Sumo Salad Consolidated Leasing Ply Limited (ACN 6,6940571)
SumoSalad International Frenchising Pty Ltd (ACN 1,4325629)
SumoSalad Singapore Frenchising Ply Ltd (ACN 153971781)
SumoSalad NZ Franchising Pty Ltd (ACN 102550694)
Sab Closed I Pty Ltd (ACN 142790001)
Property Observer gathers Ferrier Hodgson were initially contacted by Luke Baylis in late June to consider the appointment as voluntary administrators to the group. Morgan Kelly and Phil Quinlan attended a meeting with Luke Baylis and Glenn Toohey, CFO of the group, on July 3.
