OrotonGroup Ltd.'s voluntary administrators from Deloitte Restructuring Services said Dec. 27 that they had entered a binding implementation deed with an entity controlled by the Australian apparel retailer's major shareholder, Will Vicars.
The move came after market close Dec. 23. It includes a purchase proposal that will allow Oroton, which recently entered administration, to continue trading and prevent a breakup of the business, according to a company statement. No financial details were disclosed.
Deloitte partner Vaughan Strawbridge, one of Oroton's voluntary administrators, said in the statement: "Despite interest, there was no other offer that would have resulted in a superior outcome for the business or employees."
The proposal would see Vicars' entity buy Oroton under specified terms that include making a cash contribution pursuant to proposing a deed of company arrangement, and not participating in payments to creditors in respect to secured debt. Meanwhile, Oroton and the administrators are granting the entity a period of exclusivity and will work with it to finalize the proposal as soon as possible.