The collapse of Theatre At Home (TAH) has left over 600 investors out of pocket, with allegations of potential offenses under the Corporations Act 2001. The administrator’s report reveals loan liabilities of over $4.6 million to ROQO and a secured creditor claim of $7.7 million. Additionally, there are claims of deposits taken without the ability to fulfill orders, totaling millions of dollars.
The administrator, Steven Nichols, is calling for a full investigation into the Company to determine where the missing millions have gone and whether executives engaged in insolvent trading or deceptive practices. The accounting records of TAH and the Lifestyle Store were poorly maintained, raising questions about the handling of funds and the accuracy of financial reporting.
One of the secured creditors, Danny Assagby of Equiti finance group, is funding the administrators to delve deeper into the actions of CEO Vinod David and director John Kranitis. The investigation aims to uncover the truth behind the financial mismanagement that led to the collapse of both businesses.
It has been revealed that deposits totaling $1.3 million were taken by TAH, some dating back to 2022, and remain unfilled as of the appointment of administrators. The lack of proper accounting practices and the diversion of funds for personal expenses, such as luxury cars for directors, have raised suspicions of fraudulent activity within the Company.
Despite claims of selling interests in certain stores and entering licensing agreements, discrepancies in the accounts and missing stock raise further concerns about the financial health of TAH. The administrator’s findings suggest that there may not be enough funds to meet the claims of unsecured creditors, leaving many investors at a loss.
The relationship between TAH and the Lifestyle Store has also come under scrutiny, with hundreds of potential claimants seeking restitution for deposits and losses incurred. The administrator warns that the financial situation of both businesses is dire, with significant debts owed to secured creditors and unpaid employee wages.
In 2023, TAH reported a bookkeeping loss of over $1.2 million, adding to the financial troubles faced by the Company. Sales plummeted, and expenses continued to mount, leading to a downward spiral that ultimately led to the collapse of the business.
As the investigation unfolds, more details are expected to emerge about the mismanagement and potential misconduct that contributed to the downfall of TAH and the Lifestyle Store. Investors and creditors are left grappling with the aftermath of the collapse, seeking answers and justice for their losses. The administrator’s report sheds light on the extent of the financial mismanagement and raises important questions about corporate governance and accountability in the business world.