Brashs' administrator KPMG has revealed a strategy to balance the expectations of the music and consumer electronics chain's creditors and customers following the announcement in early February that the company had been placed in administration.
In a statement issued by Brashs the company said: "It is believed that Brashs has recently experienced difficulty in defining its position in the market in the face of increasing competition from a raft of recent entrants into the recorded music and consumer electronics sectors."
Brashs was placed in administration in 1994, when it was bailed out by an investor from Singapore. The company was placed in administration for a second time on February 7 this year.
"The appointment effectively transfers control to the administrators who have 28 days to consider Brashs' long term future, which may involve a reconstruction or sale of its business," the Brashs statement said.
KPMG administrator Lindsay Maxsted said all gift vouchers and lay-bys issued prior to February 7 would be frozen until February 23. He said lay-by customers with goods with a retail value of less than $30 will be able to pay the balance and collect the goods; however, customers with lay-bys worth more than $30 will have the service frozen. Customer orders will be honoured where a customer has made a deposit.
"As administrators, we act for all creditors of the company, and not for any particular group or individual," Maxsted said.
With the exception of employees, who are normally given preferential treatment, the administrators are bound to treat all creditors equally.
"In the interim, we will be holding discussions to try and provide gift voucher and lay-by customers with a way to realise better value than would otherwise be the case, without disadvantaging other creditors," Maxsted said.
KPMG is so far unable to determine whether Brashs owes money to its electronics suppliers.