Oroton creditors will meet next week to vote on a $25 million rescue plan that will safeguard 350 jobs and hand control of the luxury handbag retailer to major shareholder Will Vicars.
Administrator Deloitte has recommended creditors vote in favour of a deed of company arrangement that would return between 36 and 58 cents in the dollar to creditors of the 80-year-old company, which slipped into administration in November amid declining sales.
The vote will take place at the second creditors meeting in Sydney on March 29.
Voluntary Administrator Vaughan Strawbridge said the deal, which could be wrapped up within two months, would ensure a strong and stable future for what he said was a great Australian brand.
"This has been a complex and high profile appointment. In the interests of creditors, our focus has been on maintaining as much of the group's operations as possible, including across its extensive retail network," Mr Strawbridge said.
"The Vicars proposal is superior to other offers received, and ensures the best possible return for creditors via a recapitalised business that will provide ongoing roles for employees, and continuing relationships with this iconic Australian brand for suppliers, landlords and other stakeholders."
Mr Vicars, the co-chief executive of Caledonia Funds Management, owns an 18.2 per cent stake in Oroton.
Oroton went into a trading halt on November 28 with its shares at 43.5 cents, down 85 per cent on a year earlier.
It slipped into voluntary administration two days later after struggling with falling sales, a failed Gap apparel venture and a precarious debt situation.
At the time, 557 staff were employed at its head office and across 62 stores in Australia, New Zealand and Malaysia - with another 240 working at Gap.
Deloitte said 264 staff had already been made redundant as a result of the wind down of the Gap joint venture, and another 10 from either Oroton head office or its stores.
It said all employee entitlements would be paid in full.
One of those to depart was interim chief executive Ross Lane, the grandson of Oroton founder Boyd Lane.
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