Cucumbers, Dairy Farms, Now Harvey Norman Has A School Locker Problem That’s Costing Them Money
Gerry Harvey & his mates seem to be a recipe for disasters, first up it was failed dairy farms in Victoria, then he had a cucumber problem with a dodgy appliance distributor now the Harvey Norman CEO appears to have a new problem that is sucking dollars out of another struggling business.
School Locker is a Company operating as a brand name of KEH Partnership Pty Ltd, the operation is a joint venture between Harvey’s listed Harvey Norman and former Harvey Norman chief information officer Kaine Escott (Escott and Harvey are its two directors) made a trading loss of $11.4 million in FY19, an increase of $4.3 million on the previous year’s loss.
This time round the Gerry Harvey linked Company has ended up in the Supreme Court of Queensland Court over an alleged $2 million debt.
The spat is between School Locker and BLK International who manufacture sporting gear for elite sporting clubs, including the Melbourne Rebels and Cricket Australia.
The Company was placed into administration back in November 2016 and was purchased from administration by new investors, who kept CEO Tyron Brant on – until the board fired him last month, in dramatic circumstances according to the Australian Financial Review.
According to court documents, this was because he waited until two weeks before the $2 million debt to Harvey and Escott’s operation was due before telling the board about it.
The board claims it has not received any explanation or documentation about what the substantial debt relates to, or its terms. And it is refusing to pay it until it sees more paperwork.
This has upset Gerry Harvey resulting in taking the issue head.
What is been revealed is a series of explosive emails to customers about the delivery hold-ups, rather extraordinary correspondence from Brant to his former staff trashing the board and continued back and forth between BLK and The School Locker over the $2 million debt.