Oroton equity valued at nil
Inside Retail reports that struggling accessories retailer Oroton's equity has been valued at nil by an independent expert’s report to creditors and shareholders. The report will now be presented to the NSW courts. Oroton entered into a Deed of Company Arrangement (DOCA) with Manderrah Pty Ltd (Manderrah) in April, under the condition that the business obtains leave from the Supreme Court of New South Wales to transfer 100% of shares in Oroton to Manderrah for nil consideration. As an alternative to a 'break up' sale, the DOCA will secure the future of the business, and its employees, which initially fell into administration last November due to declining sales and high rental costs. Privatisation is the best way forward for the wounded retailer, as a long recovery trajectory doesn't sit well with the sharemarket.