Wedding shop closed racked up more than $700,000 in debt
The failed Bridal on Pulteney shop that auctioned off wedding dresses for as low as $15 shut its doors hundreds of thousands dollars in debt.
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A bridal shop that closed without warning, leaving many brides-to-be distraught over their paid orders, owes at least $772,711 to creditors, documents show.
As well as customers, gown designers, a seamstress and a marketing firm are among creditors of Romeo Investments , trading as Bridal on Pulteney, according to documents lodged with the Australian Securities and Investments Commission.
The report said a decline in sales, greater than expected capital requirements and funds tied up in a large number of sample dresses were among reasons for the store’s demise in February.
Perth-based wedding dress designer Zavana was among the worst hit, owed $17,378, while Hong Kong-based label San Patrick International Limited is owed $4850.
Director Antonio Romeo listed himself as being owed $266,500 while a Commonwealth Bank debt was secured for $399,977.
The report said some creditors were unlikely to receive money back. Mr Romeo was contacted for comment.
The report said there was about $81,000 worth of stock at the shop, including designer wedding dresses, which were auctioned off online last month to help repay debts.
Prices started as low as $15, with hundreds of ladies heading to the CBD shop to try on dresses to put bids on.
None of the auctioned dresses belonged to customers.
Successful bidders were as far away as Britain, The Advertiser was told.
According to auctioneer Evans Clarke National’s website, among the gowns sold was a San Patrick dress, worth $2780, which sold for $185, while a Nicolina dress, worth $850, sold for $110.
The most expensive was a Taylor gown, worth $3000, that 136 bidders fiercely fought for. It sold for $2050. The auctions closed on March 3.
Further data has been requested from Evans Clarke National about sales.
The award-winning bridal shop went into liquidation last month, blaming tough retail conditions and leaving about 100 brides worried they would not get their dress.
However, a seamstress and an employee were tracking down orders for distraught brides so they would not be out-of-pocket and have their dream gowns for their big day.
Bridal on Pulteney operated for a decade. However, Mr Romeo and Ms Alba Romeo owned it for three years prior to its closure.
Investigations into whether the business was trading insolvent are ongoing.