The Iconic and General Pants Vie for Surfstitch

A third deed of company arrangement (DOCA) was proposed by Surfstitch Group’s non-executive director Abigail Cheadle, a former forensic accountant, according to a new report from AFR.

The company’s co-founder Lex Pederson is reported to have thrown his “full support” towards Cheadle’s proposal, under which two class actions would be settled and most creditors paid in full. Pederson still holds over six million shares in Surfstitch Group Ltd. The DOCA also outlines that the company would be returned to shareholders and relisted on the ASX.

New heads will also be appointed in Cheadle’s proposal, including Justin Hillberg, CEO of its trading online retail business Surfstitch.com.au, leading the conglomerate, and new tech-savvy non-executive directors joining the board.

It is also understood that two other proposals were submitted to Surfstitch Ltd administrators, FTI Consulting, including one from online fashion retailer The Iconic, and another from high street fashion chain General Pants.

The Iconic’s chief executive Patrick Schmidt confirmed to AFR that he has been in talks with SurfStitch but declined any further comment.

Last month, Billabong formally expressed interested in the ailing company, but has since withdrawn.

Final proposals are being accepted till Friday and the administrators will present its final report to creditors by 21st December, with a second meeting of creditors due to be held by 2nd January 2018.

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