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EXCLUSIVE: Lifestyle Store & Theatre At Home Directors Facing ASIC Investigation As 2nd ‘Horror’ Report Released

Days after delivering a shocking report into the collapse of the Lifestyle Store linked business and the ROQO linked business, the administrator has delivered a second report into the collapse of Theatre At Home that left over 600 mums and dads who invested in new home theatre set ups out of pocket.

He also claims that a full investigation of the Company is required to probe alleged potential offences of the Corporations Act 2001 conducted by director Vinod David for insolvent trading.

There are also allegations from some out-of-pocket customers who paid money for goods via the Lifestyle Store, that a “benefit was obtained by deception” in that Company executives took deposits knowing that they did not have the cashflow to pay for goods worth tens of thousands.

Loan liabilities for TAH are over $4,676,000 to ROQO, with an additional secured creditor claim of $7,797,567, the administrator has also been swamped in $500 deposit claims that have not been honoured with this expected to rise in coming weeks.

The secured creditor Danny Assagby of Equiti Finance group is funding the administrators, with both Companies set to be placed into liquidation. This will give the administrators more powers to commence investigations of the CEO of the Lifestyle Store and Theatre At Home Vinod David and John Kranitis who was often referred to as a director of the Lifestyle Store.

Their primary objective will be to find out where the missing millions across both businesses have gone, whether executives of the Company traded while insolvent and or took deposits knowing that they were unable to fulfill the order that the deposit was being placed against.

Investigations by the administrator revealed that in some cases deposits of $1.3 million were taken as far back as 2022, which at the time of the appointment of administrators last month remained “unfilled”.

Steven Nichols the administrator claims that “An extensive investigation is required in relation to the failure as it will impact substantially on the question of potential claims against the directors (Vinod David) for insolvent trading”.

It’s also been revealed that despite millions passing through the business the accounting system was poorly maintained despite Vinod David telling ChannelNews 12 months ago that he had recently appointed a “New financial controller”.

The administrator claims that the accounting records of the company have not been properly maintained for 2024 and 2023 and that they failed to be maintained to satisfy the provisions of the Corporation Act of 2001.

This raises the question of where the money paid in deposits went with claims that money from TAH was being funnelled to pay for Lifestyle Store expenses such as luxury cars for directors, and John Kranitis.

One bank account alone revealed a negative cash position of $361,126.

Back in 2023 TAH claims that they sold their interest in their Castle Hill store and then entered into a licencing arrangement. This store is not subject to any claims. It now appears that the accounts of the TAH business have bookkept a sum of $125,430, as owing for the store, which the owner of the Castle Hill, Theatre At Home entity refutes is owing.

Finished Goods stock has been calculated at $1,706,919 however what’s unclear is whether this stock listed on the books has actually been supplied to people who paid a deposit.

When the administrators got access to TAH stores failed to reveal any of the stock.

Nichols claims “It seems unlikely that a company with the potential cashflow issues would carry stock levels of this magnitude and not be fulfilling outstanding client orders”.

The administrator also discovered undeposited funds of $1,964,980 which have not been properly accounted for, they describe it as “inadequate accounting”.

Relationship with Lifestyle Store
Investigators claim that there are “hundreds of potential claimants” apart from trade suppliers.

Some of these deposit claimants are described as “Substantial” these are outside of the $500 deposit claims taken for TAH.

Some of these deposits could relate to the Lifestyle Store with ChannelNews having already communicated with several Lifestyle Store customers who claim they are owed tens of thousands.

Nichols claims that In the final analysis …”it appears unlikely that there will be sufficient funds to meet unsecured creditors claims”.

Secured creditors include Danwa, $7,797,564, Bizcap, the Australian Tax Office, unpaid employee wages stand at $166,554. There is also $83,365 owed in Super.

In 2023 Theatre At Home had a bookkeeping loss of $1,256,233.

This was on top of the problems that the Lifestyle Store was facing.

Sales fell from $2.2M to $650,000 in 2023.

In 2023 the business had a salary bill of $1,003,263. Leases were costing the business $561,659 a year according to the administrator.

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