Johnny’s Furniture, Home Sweet Home, in joint venture talks before voluntary administration

The director of a flailing chain of furniture stores, that slipped into administration causing customer outrage, planned to merge with another national chain - which itself has a history of financial strife. Read the details

Merger talks are under way to save a national furniture chain that slipped into voluntary administration, sparking fury from customers last week.

Johnny’s Furniture, which has 15 stores in three states, left hundreds of unhappy shoppers without products or refunds, sparking a police call-out to a Gold Coast store.

The company, with stores in Brisbane, Melbourne, Sydney and Sunshine Coasts, owes money to lenders, staff, customers, the ATO, related parties and other government revenue offices.

Documents lodged by administrator Shumit Banerjee of Westburn Advisory have revealed director John McDonald had been negotiating with another furniture chain, Home Sweet Home, on a possible joint venture.

Home Sweet Home Group, which had more than 10 stores throughout regional NSW, itself went into administration in 2021.

Johnny's Furniture at Bundall which has gone into administration leaving lots of angry customers. Friday June 7, 2024. Picture, John Gass

HSH Group Australia owed more $750,000 to creditors, including $401,000 in tax and superannuation when it went under, while related company Narellan Distributors owed $1.2m.

Mr Banerjee was also liquidator for those companies too, his report said, but that would not prevent him from properly exercising his responsibilities.

“I confirm that I am still the appointed liquidator of the HSH entities however, I have settled all claims in those liquidations against related parties and Mr Maisano,” the report said.

The liquidator identified potential insolvent trading for both HSH companies.

HSH Group is directed by Sydneysider Daniele Maisano, 45, who registered a swag of new companies under the Johnny’s Furniture name last month, including locations of current stores at Bundall, Helensvale, Kawana and Virginia.

Screenshot from Johnny's Furniture website taken June 13, 2024, showing “administrator appointed” under the logo.

Eight of the Johnny’s furniture stores are on properties owned by Home Sweet Home companies or Mr Maisano, the report said.

The Gold Coast Bulletin has attempted to contact Mr McDonald and Mr Maisano.

The report outlined 39 communications between the directors and administrators before the company was placed in administration, ranging from quick emails to 90-minute meetings.

As well as a potential joint venture between the companies, the administrator and director had also discussed a potential Deed of Company Arrangement.

Mr Banerjee has received an upfront payment of $50,000 towards the administration.