In an attempt to recuperate monies owed, E-Store creditors met yesterday and voted in favour of a deed of company arrangement that will see the company pass back into the hands of director Steven Spilly.
In accordance with the deed, E-Store will continue to trade on the proviso it pays off its AU$448,000 dollar debt in monthly instalments over the next two years.
However, as Purchase pointed out, the debt would be paid off sooner if certain -interested parties" were to buy into the company.
-We are aware that the company has been approached by certain interests," Purchase said. -As the creditors have voted in favour of the deed of arrangement we put forth at the meeting it is now up to the company's directors to negotiate with potential investors."
While Purchase refused to reveal the identity of the -interested parties", he said they have sufficient experience to understand the E-store business model, and see potential in the business.
Purchase also said creditors had been satisfied that they would receive the funds owed to them, as long as the company continued to operate in accordance with cost cutting measures put in place prior to the company passing into administration.
"The company had taken some important cost cutting steps prior to going into administration," Purchase said. "Now we should see those measures begin to pay off."
Australia needs more etailers to be competitive. E-Store obviously had some problems but it's good to see that they have survived. Lets hope they can pay thier debts and be a good competitor in the category. I for one will support them.