Ann: Trading Halt, page-214

That's what it said in the Prospectus but look at the 1H14 accounts. $4m of debt was drawn down but fully repaid by balance date. Also note the working capital position in these account (debtors + inventory - creditors) - it equates to $7k per store, basically got stripped out with all the additional IPO costs etc.

That being said having run down the inventory there should't have been any slow moving / obsolete stock left. My guess when looking through the FY15 accounts is management made a conscious decision in FY15 to buy inventory earlier to get a higher GM% (through cheaper prices, rebates, better FX rates) however left less flexibility to acquire stock more likely to sell (but for lower GM%) closer to Christmas. Having tied up a lot of cash in stock that couldn't sell meant it had to be discounted below cost to move it (hence the inventory write-down) and need to borrow to get stock customers wanted.