Sporting supremo’s woes threaten Rebels
A company linked to a leading sports administrator is being chased for cash by some of Australia’s wealthiest families following a spectacular financial collapse.
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Businesses linked to a leading sports administrator are being chased for cash by some of Australia’s wealthiest families following a spectacular financial collapse.
The chairman of Melbourne Rebels Super Rugby club Paul Docherty is the director of 10 companies that have lost at least $70 million.
The Harvard Business School graduate is also the club’s major sponsor, raising questions about the Rebels’ future.
Insiders claim the Rebels was considering handing back its licence to Rugby Australia because it could not pay its bills, including up to $1 million owed to AAMI Park where it plays.
KPMG has been appointed administrator to eight companies linked to Hiro Brands, which Mr Docherty has been a director of since 2021.
Hiro Brands, which makes cleaning and beauty products for supermarkets, owes $45 million, according to KPMG documents filed with the Australian Securities and Investments Commission.
Mr Docherty’s ninth company, dental aligners business SmileStyler, owes $27 million, including $2.2 million in wages and superannuation to its 29 former employees.
A stinging report from McGrath Nichol’s Rob Smith, who was appointed its administrator, claimed that the company may have been trading while insolvent.
“The administrators consider that SmileStyler may have been insolvent from at least 1 July 2022 … with at least $9.1 million of additional debt incurred,” the report said.
Trading while insolvent means a company does not have enough money to pay its debts, with Mr Smith noting that a claim could be made against Mr Docherty if the company went into liquidation. Mr Docherty is not accused of any criminal wrongdoing.
Mr Docherty’s 10th company 3DMediTech, which made personal protection equipment during the Covid-19 pandemic and had a partnership with the University of Melbourne, has also gone broke.
Its liquidator Wayne Marshall declined to comment, saying he was in the process of selling the company’s assets.
3DMediTech had loaned $2.46 million to SmileStyler, documents state.
The financial firestorm has raised questions about the viability of Mr Docherty’s holding company BRC Capital, which has been planning a $600 million development in North Melbourne.
BRC Developments, sources claim, has paid a $7 million deposit for a $70 million parcel of land near the new Arden station, which is part of the Melbourne Metro tunnel due to open next year.
Rupert Myer and his right-hand man were guarantors on sale contracts for the land, seen by News Corp, but did not respond to requests for comment.
Mr Docherty was not at home in Melbourne on Tuesday, with his wife Georgina saying she didn’t know when he would be back.
Mrs Docherty is listed as the owner of the Camberwell home, which has a caveat on it to a company linked to Matt Bailey.
Mr Docherty was sent a list of 12 questions on Monday, including whether the Rebels would hand back its licence, his links with the Myer family, and the full payment for the land in North Melbourne.
He did not return calls or text messages.
An investor, who did not want to be named, said Mr Docherty’s assurances were “bullshit”.
Tony Hynds, of the Australian Manufacturing Workers Union, said he was representing more than 100 employees who lost their jobs when Hiro Brands went bust.
He wanted the company put into liquidation so workers could access the Federal Entitlements Guarantee scheme to get their lost superannuation and holiday pay.
“There was a new pay deal, worth about three or four per cent, that the company didn’t register so workers will miss out on that, it’s probably worth thousands,” he said.
“Some workers have been there 15 or 20 years.”
KPMG Australia’s Restructuring Services Partner, David Hardy, said: “There has been strong interest to date in Hiro Brands Groups portfolio of established brands and associated assets with in excess of one hundred parties registering interest.”
Rugby Australia chief executive Phil Waugh did not return calls.
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Originally published as Sporting supremo’s woes threaten Rebels
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