Car care company Midas Australia has been placed into administration and the 91 outlet strong business is up for sale; 30 of these outlets are franchised. The administrator, Ferrier Hodgson, has predicted some unviable stores will close.
George Georges of Ferrier Hodgson, which handled the Kleins receivership and has also been appointed as administrator for EzyDVD, has indicated that the infrastucture of Midas is good but would be stronger with about 120 outlets.
An initial creditors' meeting has been held.
Midas has been the subject of some franchisee formal complaints and disputes over the last few years including a submission to the Australian Competition and Consumer Commission. However the watchdog decided not to pursue the issue.
The collapse of the popular chain comes at a time when there is little good news for the automotive market although the decline in new car sales is expected to boost the auto repairs industry.
Midas Australia was bought out in 2001 by Philliip Bonney, who has been removed as ceo and replaced by Tim Hickey.
Last March investors John Fletcher and Lazard Carnegie Wylie Investment Management invested an undisclosed amount in the business. The SmartCompany had reported that the investors are open to any suggestions over the future ownership of the business.
