What’s Wrong At Winning? Questionable Links With Custom Installer Group
Is something wrong at Winnings? as management shuffle Company structures around and the Winnings Group gets into bed with a Queensland custom install business BMR Group that has a questionable track record with Companies being placed into liquidation.
Recently Winnings CEO John Winning has gone very quiet, refusing to answer ChannelNews questions about changes taking place at Winnings Appliances or the Winnings Group.
A onetime publicity Junkee, the young Winning now appears to be back peddling as the business faces one crisis after another.
Recently Joe Devery the chief executive officer (CEO) for Winning Retail, and Stephen Rorie chief financial officer (CFO), quit the business, and at this stage no explanation has been, given for the sudden exit nor has there been any financial reporting since they quit.
ChannelNews has also been told that risk insurance Companies have just downgraded Winnings Appliances that also owns Appliances Online.
At the same time Winning Appliances Pty Ltd and Winnings Group (Operations) has just filed a new Deed Of Cross Guarantee with the Australian Competition & Consumer Commission that links several Winning Group entities that own several of the Companies assets into one entity.
A Deed Of Cross Guarantee allows a business to take advantage of relief provided by ASIC to reduce both the regulatory compliance burden and the cost burden of managing a large group by relieving certain wholly owned subsidiaries from the requirement to prepare and lodge financial statements.
What’s not known is whether Winnings Appliances want to stop having to report their finances.
In one filing last year it was revealed that their bankers had cut back their line of credit from $20M to $15M with their bank covenant set to be reviewed in September 2020.
What’s not been revealed is whether their bankers cut their exposure to the business further in 2021 with some insiders claiming that the Company has been forced to cut costs this year.
In other moves Winning Group announced that the business was having another crack at the custom install market by getting into bed with Queensland based BMR Group who trade as XperienceONE.
An earlier move into the AV install market is believed to have cost the business millions with competitors called in to finish jobs that Winning had taken on but did not have the experience to finish.
The Managing Director of XperienceONE is Matt Manalis he is also the CEO of BMR Group and back in 2016 was Managing Director of Queensland based custom install business Livigy.
Back in 2018 ChannelNews revealed that serious questions were being asked of Queensland based and CEDIA installation Company BMR Group, after it was revealed that prior to taking over bankrupt installer Look & Listen, another one of their CEDIA installer Companies was placed into liquidation.
BMR Group took over, the Look & Listen business previously run by award winning CEDIA member Craig Samson who left behind debts in excess of $1M, he then worked for BMR Group.
A former Len Wallis employee Samson is today the owner of Bespoke Integration.
Back in February 2018 James Marc Imray was appointed liquidator(s) of Digital Residence a BMR Group Company by an order of a Queensland Court debts were believed to be in excess of $1.2M.
Back then the brand names Look and Listen, and Digital Residence were still being used to spruik AV installation services by BMR Group who is today using the Xperience One name to sell AV custom install services in partnership with Winnings.
Both businesses operated from the same premises at 4 Higgs St, Albion QLD 4010 which is today the listed offices of eXperience One.
The principles of BMR Group Brendon Cousemacker, of Elimbah in Queensland, and Matthew Manalis of Deception Bay Queensland, were appointed to the board of BSR Group on the 10th of October 2016.
16 months later the company was forced to liquidate their Digital Residence business.
Back in 2018 ChannelNews was unable to ascertain why the BSR Group continued to trade using two business names that were listed on the ASIC register for liquidated Company.
Now it’s been revealed that Winning showrooms in Queensland are set to be redesigned to feature custom install options including security, lighting and entertainment options.
In addition, eXperience ONE’s Brisbane showroom will also feature a display of exclusive appliances available at Winning Appliances.
The trading partnership becomes Effective from September 2021 and is being described by Winnings management an extension of the Winning Group’s Winning Home business.
Winning Group chief operation officer, Ryan Fritsch claims the Winnings Group is delighted to partner with eXperience ONE, the leaders of integrated home automation in Queensland, and offer customers smart home technologies age, if the proposal succeeds.
They have not said who will take the risk on jobs or whether they knew of BMR Groups involvement with custom install businesses that have been forced into liquidation.
On 27 August 2020 and in the middle of COVID -19 lock downs the Winning Group purchased the business and assets of Melbourne based Rogers Seller & Myhill Ply Ltd for $1,932,932.
In n December 2020 the Company announced profits of from ordinary activities of $6,558,000.
The Group also announced that they had acquired 268,197 ordinary shares in Winning Appliances for $23.97M.