EXCLUSIVE:Lifestyle Store Claims They Are Not Going Broke Despite Rumours
The CEO of Australia’s largest retailer of premium audio and custom installation has said that they are “not going broke”, though they have admitted to cashflow problems which “are now under control” after a series of investments.
The Lifestyle store which is located in Sydney’s western suburbs claims that the rumors are being spread by Companies who the retailer has decided not to do business with.
Director Vinod David told ChannelNews in an exclusive interview that the Company has experienced “Growing pains” and that as they were “growing and expanding into new products” they were forced to delay payment to distributors.
“Today we have 45 full time staff and we have recently appointed a new CFO and a new bookkeeper to help manage the business as we grow” Christie said.
“We have been upfront with suppliers and we have worked through payment plans and all our suppliers are happy with where we are currently at despite a tough January and February” he said.
ChannelNews has been told that the Company is now being supported by industry executives who have invested capital into the business some of these investors are shareholders in distribution suppliers to the lifestyle store.
We also understand that a debt with the Australian Tax Office hs recently been paid out in full by the Lifestyle Store.
“When asked where the rumors have come from, he said “During the past three months we have had a record number of suppliers come to us offering goods on consignment, we have rejected several of those offers. What we are doing is concentrating on the brands we already have; we believe that the suppliers we have reject are the ones who have been trying to discredit us”.
He said that there are also times when he has to say “no” to suppliers some who already supply the Company with products.
According to Christie one distributor who had been trying to get additional product ranging at the Lifestyle store was Melbourne based Interdyn.
“We already do over one million dollars’ worth of business with Interdyn and we said no to their Monitor Audio range. What we want to do is concentrate on the brands that we already sell and if something comes along that we believe is new and will deliver growth we will range it he said.
Recently, The Lifestyle Store who are about to expand their range of Focal and Naim products went overseas with Busisoft executives to see firsthand what a brand like Focal can deliver, its expected that these products will be ranged in 2020.
The Lifestyle Store is also set to expand their online operation with a new site set to go live shortly.
“This site will allow us to compete online with the brands we already do business with and it will bring in additional revenue and drive more consumers into our store”.
A major supplier who has “run a ruler” over the Lifestyle Stores books said “This is a Company that needed a cashflow injection. They are growing and we intend to support them. We acted after rumors emerged about the business and their liquidity, however our investigations have revealed that with proper management and the continued supply of goods we see an upside with the Lifestyle store”.
Another supplier who is continuing to support the Company said “I have a theory that the rumors are being spread by suppliers who would love to get ranging in the Lifestyle Store. They are the biggest AV retailer in Australia, and while they are going through growing pain’s they are still the biggest seller of specialist Hi Fi and AV products in Australia.”
An investigation by ChannelNews has revealed that most distributors supplying the specialist Channel are facing retailer and custom install cashflow problems.
“The Lifestyle is not the only retailer with cashflow problems 90% of our customers are over 90 days and most are facing financial strife” said a Melbourne based distributor.
ChannelNews understands that a major retailer in Brisbane is currently having cashflow problems and has been put on credit hold with some suppliers.