Technology Slice

DFO Tries To Ward Off Bankruptcy

DFO Tries To Ward Off Bankruptcy – Despite its popularity with shoppers, the discount chain has fallen victim to a crippling $550 million debt on the South Wharf DFO, which is threatening to trigger the collapse of the company and its nine outlets along the east coast.

A NAB spokesman said the bank was “working with shareholders” to ensure further funding for the South Wharf project.

If last night’s emergency meeting failed to satisfy bankers, then corporate doctors KordaMentha will be called in this morning to run the company, which includes the Essendon and Moorabbin outlets.

A source said receivership could not be ruled out.

DFO was founded by Toorak millionaires David Goldberger and David Wieland, who are neighbours in matching mansions.

Their wealth was estimated earlier this year at $625 million.

Through DFO and its parent company Austexx, the duo are believed to owe about $1 billion to banks and private investors.

Australian Competition and Consumer Commission chairman Graeme Samuel has also been caught up in the troubled business.

Mr Samuel owns a large proportion of DFO through a family trust, which was used to protect him from conflicts of interest as the head of the consumer watchdog.

Mr Samuel was reported as saying his family stood to lose its entire $50 million fortune if DFO collapsed.

DFO’s financial woes were revealed after workers downed tools at the South Wharf complex because they were not paid.

Restaurants and a cinema complex are unfinished.

 

Tags: Australian Competition, Cinema Complex, Collapse, Commission Chairman, Conflicts Of Interest, Consumer Watchdog, David Goldberger, Family Trust, Financial Woes, Graeme Samuel, Mansions, Millionaires, Mr Samuel, nab, Neighbours, Private Investors, Receivership, South Wharf, Troubled Business, Wieland
Posted in Money