NAB-backed WOW in receivership

All 15 stores of the Queensland-based company are set to close and 580 staff members will lose their jobs after WOW collapsed late last month. Part of the firm's troubles was its $20 million property debt amassed during the latter part of 2010.

Having already lent money to the business, NAB's private equity unit invested a substantial amount for a minority stake in WOW in January 2010, and appointed a non-executive director to the company's board. The investment was designed to expand WOW to 40 stores and build it into a nationwide brand.

Less than a year after NAB CS' investment, however, the lack of liquidity in local property markets led the company's lenders to appoint receivers Ferrier Hodgson to manage 51 retail and commercial assets controlled by WOW co-founders Sam Savvas and Suds Sotiris. The companies that owned the properties included The Zone Australia and Aristocon. A $20 million debt associated with Aristocon eventually led WOW itself to be placed in receivership.

The company has also seen its revenues and profits fall over the past two years.

Ferrier Hodgson has said there has not been sufficient interest in the chain for a sale to occur. NAB CS is still thought to retain a shareholding.

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• Australasia
• Consumer
• Australia