REDGroup administrators and franchisees declare truce (Australia)

The Voluntary Administrators of Angus & Robertson and the Angus & Robertson franchisees who have been engaged in litigation about whether their franchise agreements have been terminated have agreed to put aside their differences and to work together in a process to seek a successful outcome for REDgroup companies which are currently in voluntary administration.

The Franchisees have withdrawn the Termination Notices and Angus & Robertson has agreed to discontinue the proceedings in the Supreme Court of NSW, and to preserve the franchise agreements to allow discussions between stakeholders to continue in good faith.

Voluntary Administrator, Mr Steve Sherman, said: "This is a good outcome and is important for the preservation of the value of the Group's business as a going concern."

Angus & Robertson Bowral franchisee, Ms Marie Fitzpatrick, said: "The franchisees welcome the opportunity to engage in a process which will hopefully achieve a successful outcome for them and, more importantly, their customers."

Source: media release supplied by Ferrier Hodgson.