Rumours about the closure of the business’s Melbourne and Sydney offices began to circulate early last week when the telephones were unanswered.
The rumours were confirmed in an email obtained by Jeweller, which stated: “Fossil Group has recently been notified that the Skagen watch repair provider, Seiver’s Australia, has gone into receivership.”
The sudden closure of the business has caused considerable industry confusion because retailers have been unable to clarify the status of goods that were sent to the various Seiver’s offices for replacement or repair.
The Melbourne office phone has a recorded message with no mention of the business being closed, while the phones ring out at both the Sydney and Perth head office and the website, seiversaustralia.com, is non-operational so customers were unable to obtain any information.
There was added confusion about whether the business had been placed into receivership or administration because the Fossil email goes onto state that Fossil is, “in discussion with the Seiver’s administrators to ensure a smooth transition of all Skagen repairs into the Fossil Service Centre.”
Receivership and administration are two different processes and while it’s possible for a company to be in the hands of a Receiver and Administrator simultaneously, it’s not a normal practice for a small business. Receivers are almost always appointed by banks to gain security of the lender’s assets, while an administrator is usually appointed by a creditor or voluntarily by the directors.
Situation explained
Concerned about the rumours and incorrect information that was quickly circulating through the industry, managing director Mark Seiver contacted Jeweller late yesterday. He explained that Seiver’s Australia had closed on 23 December with 17 staff being laid-off, and then on 10 January Matthew Donnelly and Dino Travaglini from Grant Thornton were appointed administrators.
“We are in the process of informing all of our customers and the wider trade about the situation. Rest assured that any goods that were previously in our possession are safely secured and under the control of the administrators,” he said.
According to Seiver, the administrators are considering re-employing some of the staff for a short period to either return the goods or complete the repairs and then return them to retailers.
He added, “Since the business was placed in administration we have been working 16 hour days to get things under control so customers and the trade are not disadvantaged, however most of these things have to go through a process.
“Unfortunately there have been many rumours going around and I’d just like to say that there is no receivership and I am not bankrupt. Seivers Australia was placed in voluntary administration.”
A search of ASIC records show that Grant Thornton took control on 10 January and a creditor’s meeting is scheduled for 21 January.
Seiver’s distributed a number of watch and jewellery products and equipment including Rochet stainless steel jewellery and ZRC bands. It also marketed Town Talk cleaning products and undertook repair services for third party watch suppliers.
“I am also working hard to ensure the continued supply of ZRC and Rochet and we will know more once the creditor’s meeting has taken place,” Seiver said.
In August last year the business announced that it would cease distributing high-profile jewellery brand, Misaki. At the time Seiver, said: “Seiver’s Australia agreed with Misaki to relinquish the rights to the distribution of Misaki in Australia. While it’s a fantastic product, we found it difficult to meet Misaki’ s expectations in the current retail environment.”
The abrupt closure of the business has caught the industry by surprise and follows a number of prominent supplier collapses last year that included high profile bead brand Chamila, which closed in early 2013, and Tuskc announcing in September that it had ceased operations, effective immediately.
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