Wayne Ormond's Refund Home Loans in voluntary administration
Franchisees could put in a bid to buy Refund Home Loans following the company's announcement it has entered voluntary administration.
Refund Home Loans announced to franchisees that it had entered voluntary administration due to $2.5 million in debt.
Refund founder Wayne Ormond has suggested the company's problems were due to over exuberant growth exacerbated by banks retreating from financing the company's debt following the Queensland floods.
Having added a number of new businesses in the past three years, the inability to secure additional investors following the market slow down as a result of Queensland’s January floods led to the appointment being made due to increasing pressure from creditors, most notably the Australian Taxation Office.
According to a communication sent from the administrators, SV Partners, to Refund Home Loan franchisees, increasing pressure from creditors forced the company to call in administrators to seek the quick sale of the business
The administration will not affect Refund Real Estate or Refund Financial Planning.
Established in 2004,Refund Home Loan's business concept of paying a refund to its clients took it to sixth place in the competitive mortgage market within five years.
The directors have advised SV Partners that there are at least four interested parties for the purchase of the business and it is believed that a consortium of franchisees is interested in bidding for the business.
It is therefore expected that all franchisees will continue to operate "business as usual".
