- The company was listed in June 2019
- Covid saw the company's fiscal position collapse
- Along with Covid, disputes with landlords also contributed to its demise
Victory Offices Limited (ASX: VOL) has announced it has entered into voluntary administration.
The announcement comes just three years after the company was listed on the ASX, back in June 2019.
In a statement, the company said it seeks to recover from the effects of the pandemic by recapitalising business, to ensure it can emerge in a stronger fiscal position.
Danny Vrkic and Daniel O’Brien of DV Recovery Management have been appointed as the voluntary administrators of the company.
The Board said that while the company is currently solvent, it is likely to become insolvent in the future, therefore it felt appropriate to appoint administrators.
“The decision comes as the Company navigates through a challenging period where occupancy levels are increasing however higher overhead costs such as rental costs, competition and managing on-going legal disputes with landlords has necessitated the Board to make this decision,” said VOL in a statement.
“The Administrators have assumed control of the Company and will work with the Board during the administration period to maximise the outcome for all stakeholders of the Company.
“As shareholders are generally unable to transfer their shares during the administration of the Company, the Administrators will be requesting that all trading in the Company’s shares on the ASX remain suspended during the administration period.”
The administrators are expected to provide further updates to the ASX in due course.
The company reported revenue of $3.6 million in June 2022, with net income -$12.72 million.
Before its suspension, shares were trading at 4.2 cents, well below its $2.14 peak in October 2019.
The news also comes after Lanskey Constructions QLD went into administration two weeks ago.
More to come..
