Franchise Council holds out hope for Refund franchisees

Refund Home Loans franchisees may be able to continue to run their businesses under any owner that emerges, according to Steve Wright, executive director of the Franchise Council of Australia.

While unwilling to comment on the matter in detail due to “reports of a possible legal action,” Wright says it is worth noting that in many cases of voluntary administration “the franchisee networks can have opportunity to continue their business, though possibly under a changed ownership”.

“We have seen this occur in the past and understand the administrator is working on this possibility, and this is the advice we would provide to franchisees,” he says.

“The administrator has statutory obligations, under ASIC supervision, which require it to act in the interests of creditors. In this case, this should work directly to the benefit of franchisees in the network even though at this stage we cannot be sure of the final outcome.”

Refund Home Loans is a member of the Franchise Council.

The business, which collapsed in October, owes 119 creditors a combined $9.7 million.

Creditors include franchisees, mortgage broking training provider Intellitrain and law firm DLA Piper.

A second creditors’ meeting is due to take place in December, when the fate of the company will be decided.

It is understood that a number of parties have expressed interest in buying the business, including other mortgage broking businesses.

Property Observer has been unable to reach founder Wayne Ormond for comment.

 

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

Comments

Be the first one to comment on this article
What would you like to say about this project?