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Matt Blatt Chain Collapses Amid Kogan $4.4 Million Acquisition

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By Published On: June 15, 20200 Comments

Matt Blatt has closed its doors, with customers accusing the copa. This comes as Kogan acquired the company's assets in mid-May for $4.4 million.

Matt Blatt has collapsed, leaving some customers out of pocket. This comes after Kogan acquired ‘some’ of the business’ assets for $4.4. million in mid-May.

Some of these customers are said to have paid in advance for sofas and other pieces of furniture, of which they have received no further details, according to the AFR.

The furniture company now owes more than 3,000 customers money, with some customers claiming online that the retailer will not fulfil the orders. Those who are owed more than $1,000 were reportedly notified about the collapse a fortnight ago via SMS, The Guardian reported.

According to the AFR, the company has ‘insufficient funds’ to provide any exchanges or refunds to customers, and is unable to honour any warranties. “Based on the information currently available to us, there is unlikely to be a dividend to ordinary unsecured creditors of the Company,” a statement read.

Matt Blatt’s parent company, Badam Trading Co, has been handed over to liquidator, David Solomons, of the firm dVT Group.

In mid-May, Kogan “acquired some intellectual property from the prior owners” for $4.4 million, aiming to use it as a ‘springboard’ into the homes and furniture market.

In April, Badam Trading began selling old stock via GraysOnline. Adam Drexler, the Director of Badam, closed its Matt Blatt stores amid the pandemic.

On May 22, Drexler appointed Solomons as a liquidator of the company. Solomons will now investigate the sale of stock via GraysOnline and the acquisition of assets by Kogan.

While it was assumed that Kogan bought Matt Blatt in its entirety earlier in May, the company said it had purchased “some intellectual property from the prior owners following a competitive sale process involving multiple parties which was conducted by the prior owners and their advisers”.

“Some time after the acquisition, we were notified that one of the prior owners of Matt Blatt has gone into liquidation. Any customers who purchased from the prior owners are being advised to contact the liquidator with their enquiries, and we are assisting customers in doing so.”

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  1. Daniela June 15, 2020 at 10:17 AM - Reply

    a table i purchased from matt blatt was to be delivered April. Never received it nor a refund however it seems that matt blatt has sold the table to another furniture retailer.

  2. Paul June 15, 2020 at 5:23 PM - Reply

    Another company deal duds the public weither it’s Matt blatt or Kogan?
    You would think the$ 4.4 paid went somewhere and this happens all to often by the time the relevant gov department act the dosh has evaporated.

  3. Gess OH June 23, 2020 at 12:42 PM - Reply

    These guys are CROOKS!!
    All us staff are owed unpaid wages and super. And yet the family gets $4.4million?? What the hell?
    We were even told to keep selling to customers even though now it seems that the Drexler’s knew the customer was never going to get their furniture. Shame on you!

  4. david McIntosh July 28, 2020 at 8:49 AM - Reply

    IS a class action against the former directors and possibly dVT a possibility. The timing of the liquidators actions and indeed their remuneration look at odds with the course of events.
    Surely there is a decent litigator caught up in this mess?
    A small contribution from all 3,000 aggrieved creditors would equate to a rather large war chest with which to pursue the beneficiaries of this scheme of arrangement…
    Shame on the regulator for not acting in the interests of the public!


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