Principals in the lurch as Stockford slumps into administration
Theprincipals ofStockfordfinancial planning practices will be forced to negotiate with administrators to regain control of their businesses after the troubled group slumped into voluntary administration.
Stockford directors opted to bring in the administrators late last month after the failure of last ditch attempts to sell off the business.
A statement distributed by the group says it regretted the action, but considered it the only remaining option after the failure of exhaustive efforts to revive the company.
Stockford had been in negotiations to sell off some of its financial planning practices to rival dealership Investor Group (IGP). It had also given its principal advisers the option to buy their businesses back directly from the group.
However, both options collapsed after failing to win the support of the majority of principals.
Mark Mentha and Mark Korda, who oversaw the break up of Ansett, have been appointed as Stockford’s administrators.
They say their immediate aim is to organise the sale of Stockford practices, forcing principals who want to buy their businesses back to negotiate with the administrators.
Stockford listed on the stock exchange in November 2000 after accounting and financial planning firms sold their businesses to the group in exchange for shares.
Shares in the group, which reached above $2.00 in early 2001, have traded for as little as three cents in recent weeks.
A meeting of Stockford’s creditors was set to take place asMoney Managementwent to print last week.
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