Channelnews : exclusive: harvey norman suppliers still waiting to get paid after store operator collapse

Suppliers to Harvey Norman Commercial in NSW, whose franchisee was placed  into administration earlier this month, with what is believed to be millions in liabilities, are struggling to get

answers as to when, or even if they will be paid, out by Harvey Norman head office. Three distributors have told ChannelNews that the accounts department at Harvey Norman Commercial are not

returning calls. The suppliers also claim that there are no indications that Harvey Norman head office, who have no obligation to honour the previous operator’s debt, will pick up the tab

for tens of millions of dollars’ worth of stock supplied to the Harvey Norman controlled business, which was described by the former franchisee Alan Stephenson as “The most profitable Harvey

Norman store in the world” before administrators were called in. Stevenson was sacked recently after a forensic accountant and police investigation of the business which was operated by

Druin Pty Ltd whose sole director was Alan Stephenson. The Australian Securities and Investment Commission were recently advised that Alan Shepard of Sutter Shepard a NSW based receiver, has

been officially appointed as receiver and manager of Druin Pty Ltd. Harvey Norman Commercial is continuing to trade as normal. A former Harvey Norman franchisee claims that that some

suppliers could get paid out by Harvey Norman while other will be left to make an insurance claim. Those without insurance could be left carrying the debt if Harvey Norman fails to step up

and pay out millions in stock liabilities, said one observer. Alan Stephenson who was sacked by Harvey Norman was a close friend and former business partner of Harvey Norman Chairman Gerry

Harvey who has so far failed to comment on the downfall of his close mate. Stephenson who owns property investments worth millions, via different entities to the one that ran Harvey Norman

Commercial is believed to still under investigation by forensic accountants. Alan Stephenson left with long time mate Gerry Harvey. He operated the business for more than 30 years, several

of his former staff have been charged with theft of over $600,000. Suppliers who ChannelNews has spoken to claim that there has been had no communication about the monies owed for stock or

whether stock will be returned. One custom install supplier said “We are owed a lot of money and no one in the accounts department or in the Company is returning calls. No one has made any

attempt to contact us we don’t know whether we will get paid”. Another supplier said if we make an insurance claim on the stock, we are going to lose money as the insurance Company takes a

fee, for example on a million dollars this could be $200,000”. Harvey Norman Director David Ackery has not responded to our questions re the missing superanuation, or the possibility of

Harvey Norman paying out suppliers to Druin Pty Ltd who traded as Harvey Norman Commercial. Ackery is believed to have known about the superanuation shortfall claims for several years. About

Post Author David Richards David Richards has been writing about technology for more than 30 years. A former Fleet Street journalist, he wrote the Award Winning Series on the Federated

Ships Painters + Dockers Union for the Bulletin that led to a Royal Commission. He is also a Logie Winner for Outstanding Contribution To TV Journalism with a story called The Werribee

Affair. In 1997, he built the largest Australian technology media company and prior to that the third largest PR company that became the foundation company for Ogilvy PR. Today he writes

about technology and the impact on both business and consumers.