After incurring customer anger and going bankrupt, the president of a furniture store chain plans to merge with another national chain with a history of financial difficulties. Read more
Johnny's Furniture, which has 15 stores across three states, forced police to be called to its Gold Coast store after leaving hundreds of disgruntled shoppers without products or refunds.
The company, which has stores in Brisbane, Melbourne, Sydney and the Sunshine Coast, owes money to lenders, employees, customers, the Australian Taxation Office, related bodies corporate and other government tax offices.
Documents filed by administrator Sumit Banerjee of Westburn Advisory revealed that director John McDonald was in talks with another furniture chain, Home Sweet Home, about a possible joint venture.
The Home Sweet Home Group, which operated more than 10 stores across regional New South Wales, itself went into business in 2021.
Johnny's Furniture in Vandal has filed for bankruptcy, angering many customers, Friday, June 7, 2024. Photo by John Gass.
HSH Group Australia owed creditors more than $750,000 at the time of its collapse, including $401,000 in tax and superannuation payments, and associated company Narellan Distributors owed $1.2 million.
Banerjee was also the liquidator of these companies but that does not prevent him from discharging his responsibilities properly, the report said.
“I confirm that I am still appointed liquidator of the HSH companies but have resolved all claims in relation to the liquidation against the parties and Mr Maisano,” the report said.
The liquidator determined that both HSH companies were likely to become insolvent.
HSH Group is run by Sydney-based Daniele Maisano, 45, who last month registered a number of new companies under the name Johnny's Furniture, including current stores in Vandal, Helensvale, Kawana and Virginia.
A screenshot of Johnny's Furniture's website taken on June 13, 2024, showing the words “Administrators Appointed” beneath the logo.
Eight of Johnnie's Furniture stores are located on property owned by either Home Sweet Home Inc. or Maisano, according to the report.
The Gold Coast Bulletin has attempted to contact Mr McDonald and Mr Maisano.
The report outlines 39 exchanges, ranging from brief emails to 90-minute meetings, between directors and administrators before the company went into administration.
The administrators and directors were also discussing a potential joint venture between the two companies as well as a potential deed of arrangement.
Ms Banerjee received an advance of $50,000 for her administration.
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kathleen.skene@news.com.au
