EXCLUSIVE:Administrator Reveals How Vinod David,Desperate For Money, Handed Over Lifestyle Store Assets

Digital Cinema has been accused of making a “ridiculous” offer for the stock of the Lifestyle Store with Danny Assabgy the investor who tipped millions into Theatre At Home hitting out at claims that stock has gone missing.

He claims there is no “Controller document” and no other retailers were approached or made an offer for the stock that is now being held by Greys online for the administrators.

The entity that controlled the Lifestyle Store Pty Ltd was ROQO Pty Ltd the directors of this business which is now in administration were Vinod Christie David and Danny Assagby.

The Company share structure was based on 100 shares of which LTR Group owned 75% and Travolta Holdings 25% with Vinod David who was facing a mountain of debt and has been accused of trading while insolvent basically handing over the business in a desperate effort to stay afloat.

When accountants for ROQO started investigating the Company red flags were raised immediately relating to insolvent trading and questionable activities relating to the taking of hundreds of deposits with customers claiming that deals had not been fulfilled due to a lack of funds to pay for goods.

As for the missing stock that former staff claimed disappeared, this related to nine Primare products which were claimed by men who have been described as “Thugs” who turned up at the Lifestyle Store after paying a deposit and not getting either the products or the fulfilment of a contract.

The snatch of the Primare products resulted in NSW Police being called with both the administrators and the NSW Police aware of who took the products.

According to Paul Clarke from the distributor of Primare products in Australia they are aware of the situation and are waiting on the administrator to provide the police report on the incident before they attempt recovery of the stock.

Assagby told ChannelNews we have not sold any of the stock, it was initially removed to our offices and is secured with the stock now with Greys online. We have done everything by the book”.

He also claims that John Kranitis, who on several online sites has been referred to as ‘The Managing Director’ of the Lifestyle Store was in fact a “Quasi Director” involved in both the failed Theatre At Home and The Lifestyle Store businesses.

Documents seen by ChannelNews reveal that the primary creditor of ROQO Pty Ltd is the secure creditor, Danwa Pty Ltd, who is currently owed $7,797,564.00.

The administrator claims that “The effect of the sale agreement was to transfer all assets of Lifestyle Stores Pty Ltd to ROQO with a consideration being release of liabilities ultimately due to ROQO.

The agreement provided for current and future stock holdings.

This agreement gave rise to action on our part to recover stock situated at both warehouse and the shopfront in Northnmead” (this is the North Parramatta location where the Lifestyle Store was located).
He claims that the “Stock value reflected in the agreement was $1,550,351”.

The administrator said “I am currently awaiting the advice of my valuers for the current stock position once they have completed their inventory of stock recovered. Given the passage of time it is likely that stock holding will be less than at the time of sale. The position on stock will be further reported to the creditors in the liquidation of the company.”

ChannelNews understands that Digital Cinema whose offer was described as “Pathetic” was offering around $0.20 cents in the dollar.Administrators claim that limited stock sales have been undertaken to date with funds totaling $37,800 recovered.

ChannelNews has been told that things were so bad at the Lifestyle Store that despite the business having access to an online accounting system, administrators were unable to access it because their subscriptions to the service had not been paid.

The administrator said, “I have sought from the director the books and records with no response I have written to the provider requesting access to the company’s books and records, however, we have had no response to date”.

Despite the problems accounting for the revenues going through the books ChannelNews understands that deals were being “done for cash” with questions now being raised as to what happened to that cash.

Motor vehicles with a stated value of $228,950 were being funded by the business with these vehicles subject to finance deals with various entities now chasing recovery of the vehicles.

The administration claims that to date his actions in recovering the true state of affairs at the Lifestyle Store were “extremely limited due to lack of books and records”.

Earlier this year several people were becoming concerned about the true nature of the debt surrounding the Lifestyle Store that is believed to have owed the Australian Tax Office over $3M dollars.

Westpac is also owed several million dollars with Danny Assagby believed to be prepared to fund not only the liquidation of associated business but an investigation into “insolvent trading” and the possibility of “obtaining a benefit by deception” by executives involved in the business.

ChannelNews knowns of several creditors who have had deposits taken with no stock ordered by the Lifestyle Store.

The Chain of events that unfolded that led to the collapse of Theatre At Home and ROQO were outlined by the administrator.

He wrote in the Voluntary Administrators Report into ROQO Pty Ltd:

On 5 February 2024 and 6 February 2024, I received emails from Danny Assabgy representing the secured creditor Danwa Pty Ltd and shareholders of the company to discuss options and set up a meeting.
• On 5 February 2024, Danny Assabgy sent 2 emails with sale agreements: loan agreements, PPSR documents etc., from his company Dawa Pty Ltd. I did not read any attachments.

• On 8 April I received a call from Richard Arnold (Accountants) to discuss options.
•
• On 12 April 2024 I received an email from Richard Arnold setting up a meeting for 2.30pm on the same day.

• On 12 April 2024, I had a telephone conversation with Mr. Danny Assabgy and Dick Arnold in my office. Danny Assabgy was worried that he had to call police in right now as some angry customers has stolen goods at the Northnmead warehouse.

• On 13 April 2024 I emailed retainer documents to Danny Assabgy.

• On 15 April 2024, Danny Assabgy returned the retainer documents as associated appointment documents, and I was appointed Voluntary Administrator by the secured creditor Dawa Pty Ltd.

Recently we were approached by Vinod David the former CEO of both the Lifestyle Store and Theatre At Home claiming that “he wants to put his side of the story”.

We then told him that we wanted to do the interview ‘face to face’ following claims that he has fled the Country.

He immediately came back saying “At the moment the lawyers have advised me that I cannot speak with the media as it is an ongoing issue”.

In his original message and before the request for a face-to-face interview he wrote “I am happy to sit with you and give you what you need”.

He also said “hopefully you will see what has actually occurred. I will message you”.

One question we wanted answers to related to a contract between ROQO Pty Ltd and the Lifestyle Store Pty Ltd that resulted in all Lifestyle Store assets being owned by ROQO Pty Ltd including all stock.