Physician heal thyself



That sure applies to the head of the Australian Competition & Consumer Commission, Australia's business regulator. He knows so little about business that he allowed all or most of his money to be put into the shares of just one company -- apparently oblivious of the most basic rule of stockmarket investing: Spread your risks. But what can we expect from bureaucrats?

I have had investments in companies that went broke but my bottom line remained fine because they were only a small part of my portfolio of over 50 companies -- and the other companies continued to grow -- JR


THE future of the Direct Factory Outlets shopping centre chain is in doubt, with expectations one project could be placed into receivership as early as today.

If the chain collapses, ACCC chairman Graeme Samuel, an investor through a blind trust, stands to lose most of his personal fortune, a sum of more than $50 million. "This is most distressing indeed because it affects the interests of my children and grandchildren as beneficiaries of my estate," Mr Samuel told The Australian yesterday.

The chain operates eight centres across the eastern seaboard offering discounted brand clothing and household goods. As recently as February, the business boasted of growing sales as price-conscious consumers flocked to its discount centres for branded products.

But it is understood that four relatively successful DFO sites have been used to back expansion into five other less successful locations, including Canberra, north Queensland and Hobart.

Austexx, the group behind the DFO chain, is understood to have total debts of $1.2 billion. The debt problems led to a consortium of bank lenders calling in insolvency firm KordaMentha to assess Austexx's financial position less than six months ago.

A report at the weekend said the four-bank syndicate had refused to provide any further credit to the DFO group, stalling work at the South Wharf site at Docklands in Melbourne. The Melbourne project, which owes between $500 and $550 million, could be placed in receivership as early as today.

It is less than six months since Austexx disclosed it was looking for a $1.5bn buyer for the debt-ridden business. Austexx is 50 per cent owned by Melbourne rich-listers David Goldberger and David Wieland.

Arnold Bloch Leibler partner Leon Zwier, on behalf of Mr Goldberger and Mr Wieland, said his clients were working on a solution to the Austexx crisis. "The two Davids, as equity owners of Austexx, have been vigorously attempting to maximise the position of all stakeholders," Mr Zwier said.

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