A chain of home theatre hi-fi stores has gone into administration after shopfront landlords demanded outstanding rent, triggering a messy legal dispute.
Theatre at Home has eight stores in Sydney, Melbourne, Brisbane, Adelaide and the New South Wales Central Coast, but the shutters came down earlier this month.
Trading was stopped amid a row with landlords over unpaid rent, with one creditor allegedly owed $4.5million intervening to have to the electronics chain placed into administration.
A related audio-visual technology company, Roqo, was also placed into administration last Monday.
Theatre at Home, which specialises in installing home cinemas, was placed into administration last week under insolvency firm Nicols + Brien.
Theatre at Home managing director Vinod Christie-David is taking legal action to challenge this administration and the legality of goods being seized as collateral for unpaid debts.
A chain of home theatre hi-fi stores has gone into administration after shopfront landlords demanded outstanding rent, triggering a messy legal dispute
Theatre at Home has eight stores in Sydney, Melbourne, Brisbane, Adelaide and the NSW Central Coast
It has been alleged that Sydney-based private investment company Danwa loaned $4.5million to Theatre at Home and another $2.5million to Roqo, which is said to have provided equipment to the retail store.
Danny Assabgy, the chief executive of secured creditor Danwa, is also the boss of Hudson Homes and construction software group Build Buddy.
He is now engaged in a legal battle with Mr Christie-David in a complicated row over the administration move.
‘I’m not going to get into a public debate with him on social media – it will be handled through the lawyers,’ he told Daily Mail Australia.
The row has seen the doors shut at Life Style Stores, which are also run by managing director Vinod Christie-David, but not included in the administration order.
Theatre at Home managing director Vinod Christie-David (pictured right with his wife Brenda Christie-David) is taking legal action to challenge this administration and the legality of seizing goods as collateral for unpaid debts
Mr Assabgy said Theatre at Home, established in 2022, had tried to expand too quickly and was unable to repay his company Danwa, despite getting a loan extension.
Landlords had also locked Theatre at Home out of their premises, with workers also owed entitlements.
A spokesman for Steven Nicols, the administrator of both Theatre at Home and Roqo, said he would be ‘undertaking an urgent assessment of the company’s operations’.
Danny Assabgy, the chief executive of secured creditor Danwa, is in a legal dispute with Theatre at Home
‘Some of the landlords of the various premises had locked out the two companies well before our appointment as administrators,’ he told Daily Mail Australia.
‘We are mindful of this effect on employees and deposit holders, and we will be urgently trying to preserve value in the two companies by offering the businesses for sale shortly.’
Theatre at Home runs stores at Moore Park, Tuggerah, Nunawading, Adelaide, Jindalee, Fortitude Valley and North Parramatta, and a franchised outlet at Castle Hill.
Mr Christie-David had been managing director of Theatre at Home since April 2022, and MD of Life Style Stores since 2001.
***
Read more at DailyMail.co.uk