The creditors’ latest report on the multibillion-dollar collapse of Sydney-based Lifestyle Store appears to be more about a management company that collected a $650-an-hour payment to continue the investigation, without any explanation as to the real motive. the store went bankrupt, except for a few complaints from Vinod David, who remains convinced that it is his fault that the company has failed with questions about the disappearance or unavailability of updated accounting documents.
Even the insurance companies that were in the collapse distanced themselves from the company’s executives.
The answer is simple: Vinod David and John Kranatis (see above), the company’s most sensible executives, were desperate ex-bankers, with a seriously questionable track record, who once overthrew the other people who trusted them without worrying about the consequences of their bankruptcy. their actions.
As for the 16. 7 hours of investigation through Fort Restructuring administrators and a dated invoice of $118,934 that all creditors have, this is what was already known about the company that was run by two other people who were never allowed into a company and is declining to the Australian Securities and Investments Commission.
Everything the administrators had to do dates back to 2019, when executives from the traditional facilities and audio industry bailed out the two men by lending them cash to pay off their past debts, adding a $2 million tax liability.
Greed played a big role, as all the vendors wanted to have the Lifestyle store as a visitor so they could continue to sell shares to them, which boosted their profits in New South Wales, a state that is competing with Victoria and Queensland in terms of audiovisual and audio sales.
In 2020, the smartest sellers cut off credit to either company, and the company turned to credit cards to buy stocks, which deserved to have sounded the alarm.
So what are suppliers doing? They hoarded money in the store to fund an overall transformation of the North Parramatta store and yes, that looked good, but what they were doing was an investment in a company that showed the first symptoms of cancer that would eventually lead to where the company is today, dead in the water.
At one point, Paul Riachi of Indi Imports sent a truck to Sydney to gather his inventory of Loewe televisions and audio sets because he had been paid.
Even before the arrival of Danny Assagby, whom Vinod David and John Kranatis blame for the demise of the Lifestyle store, LSS is in trouble.
Despite this, in 2022, Vinod David and Kranatis, who, despite running a troubled audiovisual and audio company, had the unfortunate idea of founding another company, Theatre At Home, which is also managed with debts of several million and more than 800 clients out of their own pocket.
At that time, they only owed cash to the fiscal government and suppliers, but the liabilities of the LSS company already amounted to 8,395 million dollars in June 2021.
At this point, Danny Assagby entered the fray, No Cleanskin Assagby, the CEO of Hudson Homes, and Eqiti Finance had sailed close to the wind in previous business deals and had put up $5 million with 22% interest for the couple who then embarked on a manic expansion program with the opening of 7 outlets across Australia.
In June 2022, when Assagby passed on cash for Theatre At Home, Lifestyle Store’s liabilities amounted to $12. 754 billion, and Assagby claimed that the books he saw revealed the extent of the debt of the company involved.
After spending the $5 million, they turned to whomever they could to borrow money, even at 80% interest.
At the end of September 2023, and after ceasing to manage a number of accounting books for the company, which was likely because the company was probably in business while the bankrupt Vinod David had gone looking for even more debt.
The moment Danny Assagby did what would have made a $5 million debt, he went in search of assets to back up the cash that Vinod David and John Kranatis had squandered on their ill-thought-out concept of Theatre At Home.
Instead of one or two showrooms, the two invested the full amount, 7 stores and, of course, luxury cars and trips abroad.
When the company collapsed, Assagthrough sought out a client or investor to bail it out by buying its share in the deal.
When that failed, Assagby protected Lifestyle Store and the remaining assets against Theatre At Home’s debt.
The documents I have observed are transparent and show Vinod David promoting the Lifestyle Store assets to the Assagby-controlled company Danwa.
Vinod David claims that Danwa began retiring Life Style Store assets on April 10, 2024, adding new and display stock from the showroom and warehouse, and transferred them to its own location.
The shares, which are still unaudited at present, passed to Nicols Brien, whom Danwa appointed as trustees of ROQO and Theatre at Home on April 15, 2024.
Vinod David claims that while Danwa and the directors were still in the proceedings for the items, the owner excluded all parts of the North Parramatta showroom on April 26, 2024, when the site’s lease had been pending for four weeks and terminated the site’s lease.
The managers of the Lifestyle store claim that because Danwa had canceled all bank accounts and limited its business activities, they were unable to pay rent and the landlord was unwilling to grant an extension.
His view is extremely simplistic, the only explanation for why the company failed was that Assagby embarked on a company that was hopelessly indebted, unable to discharge credits, and most likely to negotiate while insolvent.
What Assagthrough did ended a saga of soap operas starring two liars who knew how to tell a story, not only to finance corporations but also their own employees, some of whom they had convinced to use their own credit cards to buy. goods, such as the large number of consumers who lost millions in deposits for goods that were not delivered to any of the entities.
Vinod David, director of Lifestyle Store, in his ROCAP report stated that the company’s liabilities amounted to $7. 162 billion, the administrators disagreed, stating that the company’s position represented a liability of $23. 68 million.
Let’s talk about what Assagby is owed and the fact that most salespeople don’t believe that the company that claimed to have 85 workers was trading at a 35% margin and that there is still a company that didn’t have a match for the target and was doomed to fail.
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