Administrators for collapsed accessories retailer Oroton Group have thrown their support behind a proposal for an entity associated with major shareholder and creditor Will J Vicars to acquire the business for nearly $25 million.

Voluntary administrator Vaughan Strawbridge of Deloitte has scheduled a second meeting of creditors for 29 March where stakeholders will vote on a deed of company arrangement submitted by Vicars on 23 December.

In a statement released on Wednesday evening, Strawbridge said the Vicars proposal represented the best outcome for creditors and would deliver a better return than liquidation.

“The Vicars proposal is superior to other offers received and ensures the best possible return for creditors via a recapitalised business that will provide ongoing roles for employees, and continuing relationships with this iconic Australian brand for suppliers, landlords and other stakeholders,” he said.

If the proposal is approved by creditors Vicars could take control of the business by the end of May, pending Court approval.

Under the proposal 100 per cent of the shares associated with OrotonGroup limited would transfer to the Vicars entity.

“If approved by creditors and Court, the process will ensure a strong and stable future for this

great Australian brand,” Strawbridge said.

Creditors would be paid between 36 to 58 cents on the dollar under the proposal, which would see Oroton recapitalised.

Oroton fell into administration in November last year amid difficult trading conditions, intensifying competition and high occupancy costs.

In a 186-page creditors report released on Wednesday administrators said that of the 39 proposals received to purchase the business the Vicars proposal was the one which best preserved the integrity of the business.

Administrators signed an implementation deed with Vicar’s entity Manderrah on 23 December that provided it with a period of exclusivity.

Vicars has been negotiating with landlords in the exclusivity period to secure a more favourable future for the business.

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