Ruth Tarvydas has won a stay of execution for her fashion empire after creditors, including her former King Street landlord, agreed to give her seven months to try to clear more than $1 million in debts.
Tarvydas said she was "very, very impressed" by the level of support shown by her former landlord, who is owed $426,000.
The decision by creditors to approve a deed of company arrangement will give Tarvydas until August to raise money through the planned sale of intellectual property to an unnamed third party.
The vote was opposed by the Australian Taxation Office, which is owed $95,276.
Tarvydas' company, RTI (WA) Pty Ltd, was placed in administration in October after losing the support of long-time financier ANZ Bank.
The move forced her to close her flagship King Street store, although she has since opened a new one in Claremont's Times Square.Tarvydas said yesterday business was "not too bad at all" and she "couldn't be happier" at the new location.
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