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Matt Blatt Chain Collapses Amid Kogan $4.4 Million Acquisition
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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