DFO's future rests on court decision

BY NOEL TOWELL - The Canberra Times

The fate of Canberra's remaining big brand discount depot will be decided in a Melbourne courtroom next month.

The Supreme Court of Victoria will hear an application on April 13 to wind-up Direct Factory Outlets Canberra, the holding company of the Fyshwick factory outlet centre and appoint receivers to the ailing parent company.

DFO's rival for the city's bargain hunting dollar, Brand Depot at Canberra airport, finally closed its doors last week with one-third of its 75 discount shops vacant and four more of its stores slated for closure. at the weekend.

Last October, the DFO shopping centre empire was close to collapse with $1billion in debts, but managed to keep trading.

The centre's owners have since offloaded four of their DFO complexes in NSW and Victoria to the Colonial First State Property Trust but the latest Victorian legal challenge could mark the end of the line for the Fyshwick centre.

Texxcon, a company wholly owned by Victorian developer Contexx, has lodged an application in the Supreme Court of Victoria to have Direct Factory Outlets Canberra wound up and liquidators appointed.
Texxcon had previously lodged a demand for payment from DFO Canberra for $5.58million, stemming from an alleged breach of a loan agreement between Texxcon and Nominexx a company set up to manage joint venture funds between Contexx and its subsidiaries and DFO companies in November 2009.

DFO's owners have also taken legal action against Australian Competition Consumer Commission boss Graeme Samuel, alleging he is liable for losses sustained by them arising from personal guarantees provided in return for $46 million in loans to expand DFO.

DFO spokesman Geoff Porz and Contexx boss Noel Henderson declined to be interviewed for this article.