A chain of hi-fi home theater stores has gone bankrupt after storefront landlords demanded outstanding rent, sparking a messy legal dispute.
Theater at Home has eight stores in Sydney, Melbourne, Brisbane, Adelaide and the New South Wales Central Coast, but the shutters came down earlier this month.
Trading was halted amid a row with landlords over unpaid rent, with one creditor reportedly owed $4.5 million and stepping in to put the electronics chain into receivership.
A related audiovisual technology company, Roqo, also went into administration last Monday.
Theater at Home, specialized in installing home cinemas, was placed into receivership last week under curator Nicols + Brien.
Theater at Home director Vinod Christie-David is taking legal action to challenge this government and the legality of property seized as collateral for unpaid debts.
A chain of home theater hi-fi stores has gone bankrupt after storefront landlords demanded outstanding rent, sparking a messy legal dispute
Theater at Home has eight stores in Sydney, Melbourne, Brisbane, Adelaide and the NSW Central Coast
It is alleged that Sydney-based private investment company Danwa lent $4.5 million to Theater at Home and a further $2.5 million to Roqo, which allegedly supplied equipment to the store.
Danny Assabgy, the CEO of creditor Danwa, is also the boss of Hudson Homes and construction software group Build Buddy.
He is now locked in a legal battle with Mr Christie-David in a complicated row over the government’s move.
“I will not engage in a public debate with him on social media – that will be dealt with through the lawyers,” he told Daily Mail Australia.
The row has seen the doors close at Life Style Stores, which are also run by director Vinod Christie-David but are not included in the administration.
Director of Theater at Home Vinod Christie-David (pictured right with his wife Brenda Christie-David) is taking legal action to challenge this government and the legality of seizing property as collateral for unpaid debts
Mr Assabgy said Theater at Home, founded in 2022, had tried to expand too quickly and his company could not repay Danwa, despite being given an extension on its loan.
Landlords had also closed Theater at Home from their premises, while employees were also owed rights.
A spokesperson for Steven Nicols, the manager of both Theater at Home and Roqo, said that he ‘carry out an urgent review of the company’s activities”.
Danny Assabgy, the CEO of creditor Danwa, is involved in a legal dispute with Theater at Home
‘“Some of the landlords of the various properties had locked out the two companies well before our appointment as managers,” he told Daily Mail Australia.
‘We are aware of this impact on employees and depositors and will urgently seek to preserve the value of the two companies by putting the companies up for sale shortly.’
Theater at Home has stores in Moore Park, Tuggerah, Nunawading, Adelaide, Jindalee, Fortitude Valley and North Parramatta, and a franchise store in Castle Hill.
Mr Christie-David has been director of Theater at Home since April 2022 and director of Life Style Stores since 2001.