Appliance and consumer electronics vendors who supplied Clive Peeters are set to be hit by losses of over $60M dollars say sources inside the Company.
Among those to have hit the hardest following a decision to call in Administrators early yesterday, is Electrolux who is believed to be exposed for $15M, Fisher & Paykel who is exposed for $3M as well as brands like Panasonic, LG, Sharp and DeLonghi.
According to the latest financial results issued earlier this month Clive Peeters has been struggling for some time with the Company losing close to $14M between July and December 2009.
During this period the Company credited back to their operations $16M that was recovered from the sale of assets that had been purchased with money stolen by former Clive Peeters payroll manager, Sonia Causer who is now facing criminal charges before a Melbourne Magistrates Court.
Sources say that when the $16M is removed from the Company’s balance sheet the losses are “over $14M for the period.
Greg Smith the Chief Executive of Clive Peeters has defended the actions of the Company who failed to detect the systematic theft of over $20Million dollars by Causer over a 24 month period.
This is not Smith’s first taste of a retailer he has been involved in being placed into administration.
Back in 1970 Smith was a partner in a medium-sized accounting firm that looked after the interests of Billy Guyatts. In 1971 Smith quit accounting to become CEO of the Vox retail group that owned Billy Guyatts and the Chandlors chain of stores.
