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Gaining from sale or 'cattle at the slaughter floor'?

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Australian Broker | 06 Dec 2011, 06:00 AM Agree 0
Brokers associated with Refund Home Loans are split on whether the sale of the business will be successful, or franchisees are simply being treated as "cattle at the slaughter floor"
  • Bob | 06 Dec 2011, 10:16 AM Agree 0
    The main reason for Refund being where it is, was Wayne spending thousands of dollars on new franchise models and failing. Refund Financial Planning, Refund Real estate cost the company so much money in ads and set-up and the home loan business paid for it all. Greed and mismanagement not the business model put them into administrators hands..
  • Pete | 07 Dec 2011, 04:44 PM Agree 0
    The administrators are only doing what is right by everyone and in good order. Indeed the Franchisees have themselves claimed during the administration process for marketing,advertising and other items of cost as unsecured creditors, and it is true that Refund franchisees make up a part of the Refund business' entity. All Franchisees stand to benefit from a sale, as this will place them in a stronger market position without loosing out on any trail benefits. The administrator is doing the right thing for them by forging a more competitive outcome in order for all to benefit. So in this instance, the administrator is showing regard for conscience and is following the right process and being totally reasonable. All should be focused in their interest to be good brokers, and hopefully this will happen sooner.

    An analogy of the administration: if it was a car dealership in administration, then the same process would apply as the administrator would be seeking the best outcome for all involved that would include a sale of the franchisees stake, the vehicles, the caryard and service centre with buildings, and good will of the customers. The same concept applies, only different assets for sale.

    Look at the time it took Ansett administrators KordaMentha to complete the resolution for Ansett employees, a good 10 years.
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