No ‘Smothering’ Of Palmers Details

Press, Volume CV, Issue 30960, 17 January 1966, Page 15

No ‘Smothering’ Of Palmers Details

(N.Z. Press Association—Copyright) SYDNEY, January 14. The decision to continue the business of H. G. Palmer (Consolidated), Ltd., the biggest electrical appliance retail organisation in Australia, would not “smother the facts” in relation to the collapse of the company, said the receiver (Mr C. H. R. Jackson).

Mr Jackson said that he was making the statement after letters published recently in the financial press in Australia which “make it • clear that there are certain i misconceptions in the minds of some of the members of the public.” He was appointed receiver for the company from October 25 last year, when the chain was unable to meet debenture payments falling due. The trustee for the debenture holders, Permanent Trustee Company, appointed Mr Jackson to take over assets of the company for the benefit of future debenture holders. Millions In Stock

H. G. Palmer (Consolidated), Ltd., is the wholly-owned subsidiary of the M.L.C., Ltd. With a yearly turn-over exceeding £l2m it has millions of pounds worth of stock, plant, motor vehicles and properties scattered over 143 stores and depots in New South Wales, Victoria, Queensland, South Australia and the Australian capital territory. About 33,000 people are said to have money invested in the business.

Mr Jackson said it was not correct to suggest that the debenture holders lacked representation. “I am, in fact, the ‘administrator’ of the company’s affairs,” he said. “I am convinced that the Interests of the debenture holders will best be served by a continuation of operations (at least for the time being).

“I have not adopted this attitude lightly. The ultimate position of debenture holders,

and the position of unsecured creditors, depends upon what the assets are worth.

“Obviously these assets are worth more in the atmosphere of a going concern rather than as a conglomeration of assets to be submitted for forced sale, or as applied to the debtors as a ‘collect out’ procedure in a ‘dead end’ operation with its attendant staff difficulties.” Investigation

Mr Jackson said it was not correct that the continuance of the business would smother the facts. A “thorough and prompt” investigation by the New South Wales Government was proceeding and should be completed soon.

“Further, there have been certain legal actions commenced by the company which are being handled with expedition and which will, no doubt, be fully reported when they come before the courts.”

Mr Jackson said there was no evidence that there was a ready buyer for the H. G. Palmer trading stock among appliance manufacturers —“or for the organisation as a whole.”

“To the contrary. In any event, it would not be possible at this stage to give sufficiently full and satisfactory information to interest any potential buyer in the assets, except perhaps at ‘break-up* values.”