Coomboona Holdings in hands of receivers

By Simone Dunne

Harvey Norman’s troubled joint-venture Victorian dairy investment, Coomboona Holdings, has been placed in receivership.

The furniture and electronics retailer says the directors of Coomboona appointed Ferrier Hodgson as administrators of the dairy company late last month.

Soon after the appointment of the administrators, lawyers for the National Australia Bank appointed McGrath Nicol as receivers and managers of Coomboona Holdings.

It comes after Harvey Norman’s profit took a $20.7 million impairment hit from the Coomboona joint-venture in its half-year results in February, weighing on the group’s bottom line.

Harvey Norman chairman Gerry Harvey is a director of Coomboona.

The Coomboona joint-venture, in which Harvey Norman holds a 49.9 per cent stake, started trading in September 2015 and incurred mounting trading losses.

Harvey Norman said in its half-year results in February that a dispute had arisen between Harvey Norman and the other owner of the Coomboona joint-venture, Eternal Sound, on a number of matters, including the future direction of Coomboona.

Harvey Norman had also demanded that the Coomboona joint-venture repay $18.5 million in debt to Harvey Norman• Source: AAP