Looting allegations surface as MyGrocer presses on

By
14 September 2004 05:59 PM
Tags: mygrocer, mysupercentre, asic, whitehead, licensee, loot, deed, company
Acrimony between MySupercentre and disgruntled former licensees reached a new low point over the weekend with allegations of looting at the company's headquarters.

Controversial business identity Ross Whitehead, sent a communiqué to a core group of ex-MySupercentre franchise holders Sunday accusing other former licensees of stealing office and warehouse equipment from the business's head office in Hemmant, Queensland.

Whitehead claimed he had contacted police after he arrived at the business early Saturday morning to start "containerising" the company's assets and found a number of ex-licensees in the process of "looting" the company.

Among the booty that Whitehead alleges was taken from the company, he listed computer equipment, power tools, digital photography gear, a deep freezer and a limited edition print of the Brisbane Lions which, he claimed, was a gift from his daughters.

"It's about time everyone took a reality check here. There are a lot of people acting on emotion rather than thinking clearly. I have been accused of ripping off millions, being compared to Osama Bin Laden, hated by all and everybody, and I have to say the display by a number of you during the last 48 hours disgusts me," wrote Whitehead Sunday.

MySupercentre was placed into liquidation September 5 after its creditors, left out of pocket to the tune of $3.1 million, voted against a deed of company arrangement allowing its owner E-Biz Solutions Pty Ltd to trade out of debt.

Under the proposed deed, the company's assets and territorial franchise leases were to be transferred under a new company MyGrocer Pty Ltd which would pay the creditors $1.6 million over 11 months. However, a group of former licensees gave information to authorities in August that they claimed was evidence that the business was a well-orchestrated scam.

The information prompted Queensland Fair Trading Minister Margaret Keech to warn small businesses to be wary of dealing with Whitehead.

However, that doesn't seem to have deterred the bankrupt former founder of Shopfast. In his e-mail Sunday he makes clear his intention to continue operating the MyGrocer business despite the deed of company arrangement's rejection.

"During the last few weeks I have been talking to investors and other partners to assist in going forward, but that is very hard when I suggest we have 15 licensees and vans, technology, and systems ready to go ... then when they find out that the licensees are just tearing the business apart they sit on the fence."

Continuing his impassioned plea, Whitehead, a self-described "avid sailor and ocean racer" used a yachting analogy to assure the licensees that the MyGrocer venture wasn't under water yet. Claiming to be recounting words of wisdom imparted to him by a famous racing yachtsman, he wrote:

-Roscoe, never jump DOWN into a life raft, only CLIMB up".

ZDNet Australia notes that Ross Whitehead's Steinman racing yacht was reported to have been repossessed in 2002 after his online grocery distribution E-Gistics went down the gurgler in 2001.

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Talkback 3 comments

    ross whitehead Anonymous -- 01/09/05 (in reply to #120120569)

    Could someone please have the guts to shake up ross whiteheads evil business cons by telling ASIC or the police or the DFTrading his whereabouts and the people who are benefiting from his ripoffs.

    Whitehead to front Federal Court Casualty of Whitehead -- 08/02/06 (in reply to #120120570)

    ASIC have informed ex-franchisees that Ross Whitehead faces two counts at court on 2-4 May 2006. Hopefully we will see some justice. I know many ex-franchisees & their families have suffered huge losses with severe consequences - if only we all could get our$$$ back. The government shouldn't have let a rogue to get away with doing this for over 18 years & destroying families over this time. Downie Insolvency have done absolutely nothing with the file - has any investigation been done with the whereabouts of monies etc.

    Whitehead to front Federal Court One of many Whitehead's casualties -- 10/02/06

    ASIC have informed ex-franchisees that Ross Whitehead has been charged on two counts & wil front court on 2-4 May 2006. We hope that justice will prevail. I know many ex-franchisees & their families have suffered huge losses with severe consequences - if only we all could get our$$$ back. The government shouldn't have let a rogue like this to get away with similar operation for over 18 years & destroying families during this time. Downie Insolvency have done absolutely nothing with the file - has any investigation been done at all with regards to the whereabouts of monies & his misappropriation of franchisee/creditor monies?

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