Oroton's administrator has accepted a purchase proposal from its largest shareholder that will keep the luxury handbag retailer trading and prevent a break-up of the embattled business.
Oroton says Deloittes, which was appointed administrator in November, had entered into a binding implementation deed with a company controlled by fund manager Will Vicars, who owns 18.2 per cent of the firm's ASX-listed shares.
The administrator did not give full details of the proposed scheme or how much creditors could expect to receive, but said the returns would be disclosed in the deed of company arrangement if one is put forward.
Voluntary administrator Vaughan Strawbridge said that despite interest, there was no other offer that would have resulted in a better outcome for the business or its employees.
"Our objective has been to avoid a break-up or closure of Oroton, preserve employment and as much of the Oroton business as is viable, whilst achieving a value maximising result for stakeholders," Strawbridge said on Wednesday.
