Troubled Kennedy company’s creditor deal revealed

James Kennedy’s troubled audio visual company has six months to pay out unsecured creditors, with a deed of arrangement revealing the projected dividend, as the ritzy watch seller updates staff on the company’s “fallout” with Bang & Olufsen and its lavish Melbourne Cup carnival sponsorship.

Jaimee Belle Kennedy with husband James Kennedy at the Kennedy Marquee on Oaks Day last year. Picture: Sam Tabone/Getty Images

Ritzy watch seller James Kennedy’s troubled audio visual company could pay out as little as 20 cents in the dollar to unsecured creditors.

Creditors including Optus and the tax man will be paid out of a $385,000 pool of cash set aside by EGI Audio Visual (Retail).

Kennedy lost control of the company in December when administrators were called in.

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It has up to six months to pay back the creditors, according to a deed of arrangement seen by Confidential. The projected dividend for unsecured investors is between 20 and
29 cents in the dollar.

The news comes as it was revealed a looming court battle between Kennedy and high-end electronics company Bang & Olufsen has been abandoned.

“I am now pleased to say that B&O has agreed the demand be set aside and the proceedings in the Supreme Court of Victoria are now dismissed,” Kennedy told staff in a letter seen by Confidential.

The Danish company had been chasing him for $6 million in debts it claims it was owed. Mr Kennedy filed a counter lawsuit claiming Bang & Olufsen owed him because they were selling products through Aldi.

In a defiant letter to staff on Monday, Kennedy wrote: “We have conservatively managed the fallout of this failed partnership with B&O.”

Kennedy also said the company was keeping its lavish Melbourne Cup carnival sponsorship.

He said, group wide, the Kennedy group made sales in excess of $52.5 million in the first six months of the year — an 18 per cent increase on the same time last year.

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