In a market announcement on Wednesday evening Oroton administrators Vaughan Strawbridge and Glen Kanevsky from Deloitte, who continue to control the business while a deal to sell it to Will Vicars is pending court approval, said an agreement had been reached with TDE founders Alyce Tran and Tania Liu to dump its shares.
Oroton will recover $2.2 million in the deal, less than half the $4.5 million it invested in the pureplay retailer under former chief executive Mark Newman.
Oroton also appears to have severed several arrangements related to its operational support of TDE.
At the time of the initial deal the TDE founders said they planned to use Oroton’s investment and operational support to chart US expansion, while Newman said deal was a strategic decision.
Tran had hoped Oroton, which collapsed late last year under the weight of difficult market conditions, would serve as a mentor for her and Liu as they expanded their business.
“Having Oroton onboard allows us to have a sounding board on what works and what doesn’t – a bit of higher level guidance or mentorship,” Tran told Inside Retail last March.
TDE said in a statement that remains in a strong financial position without the support of Oroton, with sales up 47 per cent since last financial year and earnings before interest, tax, depreciation and amortisation (EBITDA) up 38.5 per cent.
Sales are on target to hit $30 million in the current financial year.
“Alyce and Tania thank ORL for the opportunity to work with a major heritage Australian brand and are looking forward to continuing to build and grow the TDE business,” it said.
TDE has continued to open new stores domestically and in the US and said it will keep working to broaden its product range and service offering.