Bank takes Tarvydas to court
ANZ Banking Group is taking prominent Perth designer Ruth Tarvydas to court, seeking nearly $1 million over the collapse of her fashion business.
Nearly a year after Tarvydas was forced to close her King Street city store, ANZ has started legal action to secure the money it says it is owed by the designer.
The claim centres on a $449,141 business loan ANZ made to Tarvydas in 2010 and a related overdraft of $580,000, although the terms and size of the loan and overdraft were later tweaked.
It comes after Tarvydas, known for her revealing red carpet gowns, failed to complete a deal to sell a key piece of intellectual property in time to prevent her company from being put into liquidation. When ANZ called in administrators to Tarvydas' empire last October, she owed between $1 million and $1.5 million to creditors including ANZ, the Australian Taxation Office, her accountant and her King Street landlord.
A report to creditors suggested her company, RTI (WA) Pty Ltd, may have had as little as $200 in the bank at the time of its collapse.
In January creditors approved a deal that gave Tarvydas until August 17 to sell a confidential intellectual property asset in the hope of receiving some return on what they were owed. However, that deadline was not met.
According to the statement of claim filed by ANZ in the WA Supreme Court last week, the bank is seeking $954,425, comprising a business loan and overdraft facility, interest on that sum and costs.
Tarvydas said she was surprised by the court action because ANZ knew what she was doing to try to clear her debts.
"If they want to take it to the court, then they can take it to the court," she said. "I am a bit surprised but that's the way it goes. You want to repay your debts but the system works against you."
Tarvydas, who has already sold her house and car to raise money, said she was working on business opportunities outside the fashion industry and was optimistic.
Since the closure of her King Street store, she has opened a new store in Claremont with the support of businessman John Bond.
ANZ did not respond to requests for comment.
