Some jobs have been kept at BBY as potential buyer AIMS Financial gets closer to understanding the extent of liabilities at the failed stockbroker.
Up to 75% of the 170 staff had been listed to go but sources said AIMS Financial wanted more kept on. About half the staff are still there.
KPMG’s Stephen Vaughan, one of the administrators, said staff have been advised of an interim arrangement with AIMS Financial to allow it to complete due diligence.
George Wang’s AIMS Financial is exploring a restructure of the business through the voluntary administration process.
BBY went into administration on Monday because management couldn’t raise enough new capital to cover liabilities.
AIMS Financial had been negotiating to put in up to $3 million, in exchange for equity, but sources say the liabilities are far higher than this as discovered by receivers, Stephen Parbery and Brett Lord of PPB advisory.
BBY executive chairman Glenn Rosewall, the son of tennis great Ken, is the majority owner of BBY.
Cracks were showing in BBY’s business in January when the ASX criticised BBY’s risk management and fined the broker $180,000 because it didn’t have enough funds to cover a $192 million transaction in 2014.
BBY was started in 1987 and has more than $2 billion in assets under administration. It claimed to have turnover of $2.4 billion in ASX equities per month.
More BBY coverage:
- $2 billion Australian stockbroker BBY is falling apart
- A possible buyer is looking at failed stockbrocker BBY
- Failed stockbroker BBY would have been badly hurt by the reversal in bank stocks
- BBY has bigger capital problems than anyone thought
- Clients of stockbroker BBY scramble to save positions
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