Months after Buddy Technologies was placed into receivership, questions are being asked as to why the receivers, of the manufacturer of smart home LIFX lighting, that is still being sold at JB Hi Fi and Best Buy in the USA has not responded to several Companies interested in buying the business.
ChannelNews understands that several Companies including Laser Corporation, Tempo and Cygnett along with a major retailer, have approached the receivers, Christopher Hill and David McGrath of FTI Consulting in an effort to obtain financial and operational information but to date these Companies have failed to get a response.
This is despite the Receivers claiming back in April 2022 that they will “shortly commence a process seeking offers for a sale or recapitalisation” of the business with the 2nd of May 2022 tipped as the day that interested parties would get information on the failure of the business that insiders are claiming was “poorly managed”.
“The product was good but not the management” said one former executive at LIFX.
Serious questions are now being asked as to whether the receivers “Are looking after the interests of Buddy management or shareholders”.
In a statement issued to the ASX in April 2022, Christopher Hill and David McGrath of FTI Consulting claimed that they had been appointed joint receivers and managers (“Receivers”) of Buddy Technologies Ltd (“BUD”).
Since then, the receivers have been in control of the Company’s assets, shares in its subsidiaries, undertaking and operations with management still supplying retailers.
The Receivers were not appointed to any of BUD’s other operating subsidiaries. At the time PFG indicated they did not intend to take any enforcement action against the Subsidiaries.
In addition, PFG has provided Buddy Technology with a limited funding facility to allow the Group to continue to trade in the short term during the receivership period.
Back in April the receivers’ said that it was their intention to draw down against this facility as and when required and to provide those funds to the Subsidiaries so that day-to-day obligations can be met at that level.
How long this will go on for while former shareholder are asking questions about their investment in the Company is not known.
We are still waiting on a response from the receivers.
