The voluntary administration of former Whitcoulls owner REDgroup is set to enter its final phase today when its unsecured creditors, who are owed $21.5 million, meet to approve a plan that will see them paid out at 3c in the dollar.
Any proposal put to creditors must receive 75 per cent approval by monetary value and more than 50 per cent by number of creditors to go ahead, but it is not expected to meet resistance.
While the failure of REDgroup was a blow to the industry, publishers were nevertheless relieved that the Whitcoulls chain did not close as a result of its collapse. It was sold to retail specialists David and Anne Norman in May.
David Joel, managing director at Macmillan Publishers NZ, said the company, which was owed $900,000, was now likely to get back just $27,000.
It is understood that other creditors were covered by insurance, or had retention of title protection clauses in their supply contracts.