The saga of the near-collapse of the DFO retail chain shows no sign of ending for Australian Competition and Consumer Commission chief Graeme Samuel, who is facing new legal claims over his investment in the business.
Samuel, who owned a large stake in DFO’s parent company Austexx alongside rich list members David Goldberger and David Wieland, admitted last year that the troubles at the debt-laden debt retail chain had cost his family millions.
While Austexx was able to restructure its operations and sell some DFO outlets to reduce its debt, that sorry sage of the company is continued.
At the centre of Samuel’s problems is a bitter falling out with former friends Goldberger and Wieland.
According to a report in The Australian, the two rich list members have launched legal action against Samuel in the Victorian Supreme Court over an indemnity they say Samuel provided to them in 2004.
Goldberger and Wieland says the alleged indemnity means Samuel could have to help make up one-third of losses associated with loans made to DFO for which Goldberger and Wieland were personal guarantors.
Samuel is not commenting on the legal action, although reports suggest he will defend the claim.
Golberger and Wieland’s lawyer Leon Zwier from top Melbourne firm Arnold Bloch Leibler was not available for comment prior to publication.
The legal action follows an earlier attack on Samuel’s credibility from Zwier, who called for a “full, open and transparent inquiry about DFO” and Samuel’s role as ACCC chair.
“If the ACCC does not maintain the highest standards of governance, the ACCC as a regulator cannot make either criticism, or demands, of boards to ensure executive officers remedy corporate culture and comply with the Australian anti-trust law,” Zwier said in early October.
Neither the Government of the Opposition would buy into the calls for an inquiry. However, Samuel’s term as ACCC chair is scheduled to finish in June, and reports suggest he is keen for his term to be extended for a second time.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
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