FRB IPO, page-224

Franchise Retail Brands fell over in January but the repercussions continue to play out in unexpected ways

CAVEAT LODGED

Franchise Retail Brands fell over in January but the repercussions continue to play out in unexpected ways.

Sean Corbin, the former boss and co-founder of the failed Brisbane hospitality group, now finds himself with a caveat lodged on the title of his home.

Kitchen equipment rental outfit Silver Chef slapped the caveat on Corbin’s property at Arana Hills in early January.

Property records show he and his missus bought the five-bedroom colonial reproduction dwelling for $635,000 back in 2007.

Caveats lapse after three months so Silver Chef applied to the Supreme Court last Friday to have it extended while the two sides continue negotiations.

PERSONAL GUARANTEES

According to the documents filed in court, Corbin provided personal guarantees to Silver Chef to secure a huge laundry list of kitchen goods for two of FRB’s now-defunct eateries, Hombre Mexican Street Food at Mango Hill and New York Slice pizzeria at Banyo.

Among the items was a Flametree stone hearth oven rented out for $343 per week to cook up all those tasty pizza pies.

The nine separate agreements were struck in 2016, well before FRB crashed with debts of at least $7.6 million and possibly as much as $14 million.

The agreements reveal that Corbin guaranteed weekly payments totalling $57,984 over 32 months for Hombre and $204,732 over a similar period for NY Slice.

Frustratingly, the court records don’t reveal how much was paid and how much remains outstanding.

Silver Chef boss Allan English told us yesterday that he didn’t know and one of his operatives declined to divulge the amount.

But the fine print of the agreement indicates that Corbin is liable to pay the full amount even though the equipment is no longer used at the two venues.

LOCKED IN TALKS

Corbin also refused to say how much he owes, citing the usual commercial in confidence reasons.

But he said that he hopes the negotiations, which kicked off early last month, can be resolved over the next two weeks.

He told City Beat yesterday that the two sides had reached agreement on most of the claims and that he was not planning to lodge a formal defence in court.

The matter, which has been adjourned to June, comes at a rather awkward time for Corbin as he seeks to kickstart his latest retail venture, Phoenix Food and Coffee.

Corbin launched the company back in December, just days before resigning under pressure from FRB.

His stated aim is to wheel out an array of new outlets, such as Urban Addiction pizza, Melting Moments ice cream, Tonic Coffee and South American restaurant Elaya.

He told us that nine stores were operating back in January, with plans to double that by June.

But financial dramas with landlords and suppliers have led to shop closures, with just a single Urban Addiction outlet now operating at Albany Creek.

It’s understood at least one supplier has turned to a debt collection agency to settle an alleged bill but Corbin said he was unaware of the claim.

Regardless, Corbin said he still hopes to launch a new Mexican venue shortly at Mango Hill.

CLASS ACTION

Meanwhile, City Beat understands that a potential class action lawsuit arising from the FRB debacle continues to progress quietly but surely.

Brisbane legal eagle Warren Jiear declined to comment yesterday after getting instructions from his clients, who tipped in about $7 million of seed capital ahead of an aborted $20 million float.

A number of these punters had taken advice from Bell Potter Securities, which was poised to underwrite the IPO. The firm’s equities boss, Cyril Jinks, wouldn’t talk about it yesterday.