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Furniture family used to a spot of bother

The family behind the Furniture Spot stores which changed hands between father and son last month, leaving creditors and employees unpaid, has liquidated at least six companies in the past 12 months.

An investigation by WestBusiness has found that in most of those liquidations, Melbourne's Dimarelos family transferred ownership of the companies to third parties shortly before they were wound up.

Creditors of The Furniture Spot Pty Ltd - which had operated the discount furniture stores across WA - were shocked and angered when they discovered owner Apostolos (Paul) Dimarelos last month sold the business to his son Peter.

Paul Dimarelos' company was then put into liquidation with "minimal" assets. Dozens of creditors owed a combined $2.5 million were advised to write the debts off and affected employees to access a government fund for unpaid entitlements.

The five Furniture Spots remaining in WA have continued to operate under the management and ownership of 26-year-old Peter Dimarelos' Furniture Retail Group Pty Ltd, a company he registered late last year.

The $1.7 million deal was financed by parent company DIM Furniture (Vic), which Paul Dimarelos owns.

Against the backdrop of a difficult retail environment, an estimated nine Furniture Spot stores have shut their doors in the past 12 months.

Other Dimarelos' businesses in the Eastern States have also run into trouble.

Last month, a company called Furniture First Pty Ltd, believed to be behind Furniture Spot stores in Victoria, was put into liquidation owing $5.2 million.

Former shareholder Paul Dimarelos was replaced as a director on June 2 by new owner Charikila Giokarini, according to documents filed with the corporate regulator.

In May, a former Dimarelos company called Tasmanian Wood Panels (Aust) Pty Ltd owing $ 2.7 million was wound up by director Vinel Alfoque, who became the owner a month earlier.

A former supplier of Tasmanian Wood Panels told WestBusiness the company had been a panel presser with about half a dozen employees which he believed fell foul of economic conditions in the island State.

A related and renamed company called Panel Employment Pty Ltd went under at the same time under new owner/director Russell Saunders.

In November, internal labour hire services company Robry Pty Ltd, formerly DIM Furniture (Aust) Pty Ltd was wound up owing at least $600,000.

Its director, Robert Bryers, assumed ownership from Paul Dimarelos a month earlier. The liquidators told a creditors meeting that the company was wound up as part of a restructuring and the majority of employees redeployed to other entities in the group.

In the same month, Dananteva Pty Ltd, formerly Furniture Spot Cannington Pty Ltd, went under owing about $500,000.

Director Daniel Evans had assumed ownership from a Dimarelos family member the month before it collapsed.

In most of these cases, parent company DIM Furniture has been the biggest creditor. The second biggest is usually the Australian Taxation Office, with the combined unpaid tax bills of the liquidated companies running into millions of dollars.

The Dimarelos empire has fallen on hard times before. In 1997, 16 out of 20 companies of the DIM group were put into voluntary administration.

While some WA creditors are furious at the situation, the family has at least one defender in real estate agent Ron Farris.

"We've always found them pretty good tenants; it's just one of those things that happens," Mr Farris said.

But another agent owed more than $100,000 said Furniture Spot vacated a store without notice.

Both Paul and Peter Dimarelos have not responded to requests for comment.

  • WA Newspapers is a creditor of The Furniture Spot Pty Ltd.


peter.williams@wanews.com.au