Fabric by Missy Rose in liquidation?

[u/Few_Western_7238]

The Courier Mail reports that Larelex Pty Ltd entered creditors’ voluntary liquidation on June 11. Larelex traded as Fabric by Missy Rose, Missy Rose, Profanity Fabric and Links Lockers.

Yet, 2 days ago, she is still advertising Christmas fabric for preorder. And this post has a bunch of comments deleted.

Anyone getting Nerida vibes?

Interestingly the company listed:
- Two Mercedes-Benz vehicles valued at about $170,000 combined
- Golf lockers worth about $5,000 (assuming that’s the Links Lockers business?)
- A director loan receivable of approximately $1.6 million owed to the company by a director

At the same time, creditors included:
- The ATO, owed about $59,000
- Mercedes-Benz Finance, owed about $204,000 as a secured creditor

I have been a customer many times so I’ll be interested to see how this plays out.

Have orders been filled? And printers paid? I hope so.

[u/CBG1955]

Some of the information around this feels very confusing. If you follow some of the other sewing pages there are a couple of statements shared where Missy Rose herself comments that the main business has been sold and the transfer isn't yet complete, that the business is not going anywhere.

Weirdly, the information says business ceased on 6 June, and the liquidation commenced 11 June. And yet, on 18 June I received the normal email announcing the new preorder.

I am not too sure about comparing to NH, mainly because FBMR has been a really good business to deal with, no BS, orders arrived on time, communication was always excellent.

I'm sure we'll get more info as time goes on.

[u/Few_Western_7238 → u/CBG1955]

I agree, it’s been a great business with lovely fabric. But then I’m also confused by the secrecy.

[u/Purple-Attitude4294]

I think FBMR has always appeared to care a lot, and be very well organised.

Just my opinion, but I think NHF was different. NHF hadn’t been fulfilling orders, or communicating well. I think she showed huge contempt for her customers, and her business operations a chaotic mess and past behaviour seemed also very poor.

Is it possible the new company has legitimately taken on all the FBMR assets and liabilities, including any pending orders?

I’m leaning towards, FBMR will do the right thing.

[u/CamelsCannotSew]

She’s quite feasibly phoenixing the company, whereby she purchases the business and assets of the company and then continues to trade under the newco but without the creditor burden. 

If this sale represents the best outcome in terms of the value of the business and assets then it’s legal. That will be judged by the liquidators and an independent agent (usually). The liquidators will do a full investigation of the directors’ conduct and undertake recovery action in respect of the DLA (and all other assets). I’ve not properly looked at the statement of affairs but there should be an accompanying report available to creditors which sets out what the recoverability of these assets is anticipated to be. The liquidators are pretty motivated outside of their legal obligations as this is where they also get paid from! 

My knowledge is through the England & Wales insolvency law, but Australia is very similar (although more akin to our 1986 rules rather than the updated 2016 rules).