Pets Paradise in hands of receivers

The pet accessory chain Pets Paradise, which has 62 stores in Australia, has collapsed and is now in the hands of the receiver Deloitte Restructuring Services. Stores operated by franchisees are not in receivership. Pets Paradise was founded by Gary Diamond and also owned the Billy Baxters family restaurant franchise. The Federal Court was told recently that the company was stripping the group of its assets to avoid paying a $ 1.3 million judgment. In consequence, the banks appointed Deloitte Restructuring Services as receiver for the wider group of 20 companies to protect and recover the bank's debt by selling the business.

According to a statement by the receiver, the stores will remain open while the company's financial situation is investigated further. The group has 170 staff across its operations.