EXCLUSIVE: Investor Responds To Lifestyle Store CEO, Who Stands Accused Of Being ‘Insolvent’
Vinod Christie David the former CEO of the Lifestyle Store and Theatre At Home stores, who was kicked out of his North Parramatta Lifestyle store with claims that he was operating while insolvent has gone viral claiming that what happened was “unlawful”, the person he has accused has spoken to ChannelNews exclusively.
Vinod Christie David
Singling out Danny Assabgy the CEO of both Hudson Homes and finance Company Equiti, who was the person who funding him into the ill-fated Theatre At Home stores with borrowings of over $5M, Vinod David claims that Assabgy had no authority to do what he did shutting down the lifestyle store and removing stock to a secure warehouse, after threats of violence from distraught customers who were “hell bent on taking stock from the Lifestyle Store”.
Some turned with a truck to collect stock with the police being called at one stage.
Assabgy who has lawyers and accountants on tap and is an expert in debt collection disagrees claiming the Lifestyle Store was “trading while insolvent.
Danny Assagby of Equiti
He claims that the former CEO who gave personal guarantees to landlords, finance Companies and suppliers is now in no position to “back up” those guarantees or payback people his Companies have taken deposits from.
These companies and landlords of the failed Theatre At Home stores are now chasing down their personal guarantees he claims.
ChannelNews has had several calls and emails with people owed hundreds of thousands of dollars, at the centre of their frustration is the actions of the management of the Lifestyle Store and Theatre with Vinod Christie the person controlling both entities.
A classic example of consumers who are now desperate for information is Paul and Jessica (Surname not included for privacy reasons).
They handed over $45,000.
Supporting a young family they are currently building a new house and in an email to ChannelNews they said ” As a Lifestyle Store customer, thank you for covering what is going on.
Your website is the only source of information we have to find anything out. No one is talking to us. I have spoken to Fair Trading, emailed the Administrators, tried to stop our bank payments (but it is likely too late).
As a young family with two small children who are just trying to get their home build finished, this is devastating to us.
We have paid over $45k to this company and have little to no hope now of seeing our money ever again, while still needing to finish our house”.
This is just one of the many people who Vinod David Companies took money from, now they want answers.
According to the Company handling the administration Sydney based Nicols + Brien, they have been “swamped” with claims following the collapse of Theatre At Home including customers who paid deposits in the tens of thousands.
During a visit to the Lifestyle Store last week, we spoke to three people who claimed that they were owed over $230,000.
Assabgy claims that he has already sent Vinod David legal letters, relating to what he claims are false acquisitions.
He also pointed out that the former Lifestyle store CEO has activated a new Lifestyle web site after the last one crashed.
ChannelNews who exposed the drama relating to the previous Lifestyle site, has been told that when Vinod David went to his IT Company to try and fix the problem with the old site, he was not happy with the costs associated with repairing the site which insiders claim was already “cobbled together with patches”.
“Vinod David is insolvent so there is no way he can trade with a new web site” Assabgy he said.
A visit to the site reveals a front-page featuring Cambridge Audio stock supplied by Busisoft however there are no links to a transaction engine.
Being bankrupt is nothing new for Vinod David with the same suppliers who are chasing their stock back or payments in the current saga now owed tens of thousands of dollars for stock that has suddenly disappeared from the Lifestyle Store.
Assabgy claims that the stock is in a secure warehouse and that he is working with the administrators to match up stock to orders.
He is also working with several people who paid deposits.
“If we have the stock, they ordered we will send it to them” he said.
“at the end of the day the truth will come out, Vinod David can write whatever he wants the truth will tell the real story”.
“I got legal advice before I did anything” he said.
Vinod David claims that by virtue of Danwa’s position in Roqo a business that links Travolta Holdings and LTR Group into the entity he was misled.
The information lodged with ASIC relating to the setting up of the business was approved by Vinod David as being accurate.
Vinod David who is still talking to suppliers, claims that Danny Assabgy via Roqo engineered himself into being the “Mortgagee in Possession” over Lifestyle Store and that he had security escort all of the staff off of the property, taking control of our assets and thereafter restricted access to the business.
He claims that during “the past few days, we have been informed that Danny Assabgy or his agents have removed millions of dollars of new and display stock from both the warehouse and the Life Style Store showroom and subsequently commenced disposing of those assets, which belong to Life Style Store and other parties, claiming he is entitled to them”.
Assabgy has confirmed to ChannelNews that he is already talking to retailers regarding the purchase of former Lifestyle Store stock.
One of the businesses he spoke to was NSW retailer Digital Cinema.
The statement that was issued yesterday claims “We are currently exploring our options, (including engaging legal representation to obtain legal advice) in order to act in the best interest of all stakeholders”.
One question we want to ask is why if he though Assabgy’s actions were “illegal” has he not sought a court injunction to stop him.
We have also attempted to ask him to confirm or deny that he is insolvent and that he is not in a position to pay out the personal guarantees he has committed to.
He said “It appears that due to the damage caused by Danny Assabgy’s actions, we cannot operate the business in its current format. We are currently exploring our options.
Assabgy claims that the administrator also sought legal advice prior to taking on the administration of Theatre At Home.
“Everything has been done properly he (Vinod David) is looking for someone to blame”.
“I have people calling me right left and centre looking for money.”
“I will seek this out it will take a month and we will only take what we are entitled to “he said.
As for Vinod David he has ducked for cover. It was only two weeks ago that he was telling ChannelNews “We are not going broke”.
He also described Assabgy as the man who was “going to save” the Lifestyle Store.
He admitted that he was closing down the Home Theatre Stores because of liquidity problems.
He also admitted as the industry knew that the Lifestyle Store had cashflow problems and that he had sold down shares to Assabgy, who was already a 50% shareholder in Theatre At Home.
He said that Assabgy had “35%” ownership of the Lifestyle Store.
“We are restructuring the business and as soon as we have new investors in the business we will move to an online only model for Theatre At Home, we have the site almost built for this”.
